The revised allocation of sugarcane for ethanol production is likely to have marginal impact
Healthy results on higher crushing with better cane variety and distillery segment expansion
The company is a key beneficiary of improving sugar industry fundamentals and growing industrial activity
Distillery segment expansion and higher crushing with better cane variety to drive margins growth and robust cash-flow generation
Following a healthy performance in 2022 on the back of record exports and production, the sugar industry is on track for a steady growth. The energy- positive and lucrative ethanol will be an added sweetener
Ethanol story intact with enhanced capacity expansion. Massive opportunity in bio-fuel to drive profitability and help in re-rating. Robust fundamentals, strong parentage, and established track record add to confidence
The task force is looking at two key things- reduction of the impact of sugarcane cultivation involving inefficient use of groundwater and bringing India's sugar industry in line with the global markets.
The subsidy on cane prices is likely to be linked to sugar exports, say sources.
ICRA estimates the sugar production of the domestic sugar industry to decline from 26 million MT in sugar year (SY1) 2011-12, to around 24-24.5 million MT in SY 2012-13 (a decline of around 6-8 percent), driven mainly by weak and delayed monsoon in several key growing regions.