Shree Renuka Sugars Limited
Download as PPTX, PDF0 likes1,576 views
The document discusses SWOT analysis of the Indian sugar industry. It identifies strengths such as India being the second largest producer globally and providing employment. Weaknesses include lack of raw material availability and old technology. Opportunities exist in upgrading technology and high value byproducts. Threats include government price regulation and deteriorating soil quality. The document also examines strategies used by Shree Renuka Sugars Limited, a leading sugar company, to achieve organic growth such as buying used equipment, co-generation, and global expansion through acquisitions in Brazil.
Shree Renuka Sugars Limited
- 1. Prepared By: Biman Boruah(15-50- 106) Dibakar Dutta(15-50- 107)
- 2. Breaking the mould in a traditional industry by Shree Renuka Sugars Limited. Department Of Management Studies , NIT Silchar
- 3. SWOT Analysis of Indian Sugar Industry Strength Indian Sugar Industry is the 2nd largest producer in the world after Brazil. Indian Sugar Industry paid well over Rs 122.69 billon to the sugar cane growers. Provides direct employment including ancillary activities to near about 0.6 million workers. Sugar cane is more profitable than any other cash crop in India. Radius between the sugar industries is decreased from 40km to 15km. High demand through out the year. Weakness Non excess availability of raw material. Lack of Professionalism. Old Technology. Department Of Management Studies , NIT Silchar
- 4. Opportunities High value of by product of downstream industries. Technology upgradation. Threat Govt regulate the price Ground water availability for irrigation . Quality of soil deteriorates due to over use of fertilizer & presticides . Production of sugarcane dependent on sugar cane. Department Of Management Studies , NIT Silchar
- 5. Strategies in achieving organic growth Buying of second hand equipment. Co-generation of power. Port based cogeneration refinery Surplus electricity generated is sold to Indian grids. Taking plant on lease for production. Department Of Management Studies , NIT Silchar
- 6. Key learning from SRSL How to reduce capital investment in acquiring fix asset? Backward integration for effective production. Mutually working with other firms for optimal utilization of resources available in the industry. Department Of Management Studies , NIT Silchar
- 7. Role of leadership in case of SRSL Changing the trend from cooperative to private sector. Providing shares to farmers. Increasing processing capacity greater than the average in the industry. Acquisition of other firms in the industry. Department Of Management Studies , NIT Silchar
- 8. Why SRSL expanded to Brazil ? Brazil is the largest producer of sugar cane in the world. As the cost of production in Brazil is much lower as compared to other countries. Climatic condition of Brazil is favorable for Sugar Industries. Seasonal variation of production. Global expansion strategy SRSL established themselves at an international standard by acquiring Brazilian Crusher Equipav for Rs. 1156 crores. Department Of Management Studies , NIT Silchar
- 9. CORPORATE RISK EXPOSED to SRSL Selling shares to Wilmar International which can lead to acquisition in future. Bought 50.34 % shares of Brazilian Crusher Equipav which was in heavy debt . How they overcome the risk? SRSL invested 5.62 Billion to increase the crushing and co-generation capacity. To repay debt and increase Working Capital from the deal amount. Department Of Management Studies , NIT Silchar
- 10. Global Business Entry Option European Union is one of the highest producer of sugarcane and second most consumer of sugar. Unites States is one of the highest consumer of sugar and Mexico is the fourth largest producer of sugar. Department Of Management Studies , NIT Silchar
- 11. Department Of Management Studies , NIT Silchar