Chairman's Vision
 
 India as a nation is growing stronger by day the day and making its
 presence felt across the globe. The shift in basic economic policies
 towards liberalization during last decade has started bearing fruits.
 The stock market index has risen from 4,000 to 8,000 within a short
 span of 2 years.  Simultaneously the fortunes of the sugar industry are
 soaring high.
 
 Recognised as one of the biggest players, the Indian sugar industry has
 an annual turnover of Rs. 500 billion with a contribution of Rs. 20
 billion to the exchequer every year.  The favourable sugar prices have
 improved the financial health of the industry considerably during last
 2 years from the earlier dire conditions.
 
 With the government taking policy initiatives to promote the sugar
 industry namely de-licensing of sugar sector, permission of future
 trading, soft loans for capacity expansion, more and more avenues are
 opening up. The economic capacities have gone up from 2,500 TCD, two
 decades ago to 6,500 TCD. Accordingly the company has embarked on the
 expansion drive and is increasing its sugarcane crushing capacity from
 4,500 TCD to 6,500 TCD.  The company intends to continue the expansion
 spree to maintain the competitive edge. Quickly sensing the pulse of
 the sugar industry, the company installed the refinery, and during the
 period from Jan-Apr 2005 had successfully completed the refining of
 10,000 tons of raw sugar.
 
 The profit margins were in strain during 2002 due to high cane price
 and excess production. However the last two years have seen a major
 improvement in the prices and India has successfully imported sugar to
 meet the domestic requirement. It is expected that the production would
 increase during 05-06 to 180 lakh tons obviating the necessity of
 importing sugar.
 
 The Company was among the pioneers in recognizing the opportunity put
 forth by the sugar industry by way of mixing 5% ethanol in petrol and
 set up an ethanol plant of 45 KLPD and initiated the setting up of 60
 KLPD ethanol plant in Maharashtra.  Ethanol is considered to be an apt
 import substitute for the crude oil. Herein lies a great potential for
 India to match up with the level of Brazil, which is using ethanol as a
 petrol-substitute.
 
 On the whole, the sugar industry is shining after dark clouds and has
 bright future with the constructive support from Government, Grower and
 Labour. And with the necessary infrastructure in terms of Land,
 Management, Technology, Cultivation Area, R&D Systems, Power,
 Irrigation, the company proposes continuous expansion in line with the
 government policies to achieve higher productivity & returns, and
 become a global player.