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Akshita is an equity research analyst working with a US Research firm and an aspiring CFA charter. With a keen interest in financial modeling and valuation, she prepares exemplary-detailed research reports.

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Contributor since: 2022







Equity Research Report: Shree Renuka Sugar

Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refineries in the world.


Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refineries in the world. The company has its Corporate office in Mumbai (Maharashtra, India) and Head Office in Belgaum (Karnataka, India). Shree Renuka Sugars operates eleven mills globally (four in Centre-South Brazil and seven in India) with integrated ethanol and power cogeneration capacity. The company also has two large port based sugar refineries in India.


  • In DII's Axis Bank Limited has decreased its shareholding from 1.83% to 1.44%,
  • FII's have increased their shareholding from 0.68% to 0.74%.



  • The Company’s operating revenue stood at H 55,434 Mn vis-à-vis H 45,679 Mn in FY 2019-20. This was mainly driven by increased sugar sales of H 7,157 Mn with a value growth rate of 18% and increased ethanol sales of H 2,302 mn with a value growth of 49% over last year.
  • Operating expenses for the year stood at H 5,814 Mn as against H 5,195 Mn in FY 2019-20 majorly due to increase in expenses in line with the increase in volumes.
  • Company generated an EBITDA of H 5,606 Mn visà-vis H 2,077 Mn last year. The increase is largely on account of improved realisation in the sugar and ethanol segment.
  • After consecutive seven years of negative PAT, the Company recorded a positive PAT of H 556 Mn for the year, driven mainly by improved operational performance and savings in interest costs.

  • Net worth: Net worth increased to H 2,156 Mn in FY 2020-21 from negative Rs. (1,201) Mn in FY 2019- 20. This was due to improved profitability and equity infusion by the promoters during the year.
  • Current assets: Current assets as on 31st March 2021 stood at H 30,344 Mn. Current ratio is 0.72 as on 31st March 2021.
  • Inventories: Inventories increased by 42% from H 16,544 Mn in FY 2019-20 to H 23,544 Mn in FY 2020-21, mainly due to increase in refinery stocks



The refinery business of Renuka Sugars is an export oriented business. The company imports raw sugar and exports white sugar to different parts of the world. In the year 2020-21, the company relied on procuring raw sugar from the domestic market to substitute its imports. They have 2 refineries in the state of Gujarat and West Bengal & 6 in the state of the art sugar plants in the states of Karnataka (4) & Maharashtra (2).

TPD - Tonnes Per Day & TCD- Tonnes of Cane Per Day

Key Highlights for FY 2020-21

  • The revenue from the sugar segment amounted to Rs. 53,137 Mn, accounting to 80.01% share of the total revenue mix in comparison to Rs. 42,223 Mn in the previous year
  • The refinery in Haldia restarted after a gap of 2.5 years. Total raw sugar melted at the Kandla refinery stood at 1,201,447 MT and 116,927 MT in the Haldia refinery.
  • RENUKA occupied 22% market share in the branded sugar segment.


  • Shree Renuka Sugars produces power from bagasse (sugarcane by product) for captive consumption and sale to the state grids in India. The Bio energy produced from burning bagasse is a renewable energy that provides a significant reduction to greenhouse gas emissions.
  • Renuka has 262 Cogeneration power plants located in the states of Karnataka, Maharashtra, Gujarat & West Bengal.








Key Highlights for FY 2020-21

  • 77% of our cogeneration process is based on renewable energy ensuring significant reduction in GHG emissions.
  • The revenue from the segment amounted to Rs. 4,301 Mn, registering 6.4% share in the total revenue mix in comparison to Rs. 3,722 Mn in the previous year.
  • During the year, (2021) the Company’s Power Generation was at 529 Million Kwh (of which the Company exported 248 Million Kwh to the Grid) as compared to 478 million Kwh in FY 2019-20.


Renuka is one of the largest suppliers of ethanol to oil marketing companies in India. Through distilleries, they manufacture 3 grades of Ethanol i.e. Rectified Spirit (RS), Extra Neutral Alcohol (ENA) and Absolute Alcohol (AA) or Ethanol (used for fuel blending). Further, through subsidiary - KBK Chem-Engineering Pvt. Ltd., they provide turnkey distillery, ethanol, certain sugar process equipment and biofuel plant solutions. 

KLPD - Kilo Litres Per Day

Key Highlights for FY 2020-21

  • The revenue from the segment amounted to Rs. 7,014 Mn, accounting for 10.56% share of the total revenue mix, as compared to Rs. 4,712 Mn in the previous year.
  • 136 Mn litres of ethanol produced – highest ever production, as compared to 110 Mn litres in the previous year, registering a growth of 23% YoY.
  • The plants are running at 100% capacity utilisation.
  • Renuka has also operated with expanded capacities and used incineration boilers to burn spent wash, enabling them to save a large amount of external fuel.
  • Increase in ethanol supply also rose 90 Mn litres to 120 Mn litres, an increase of 34%.


2nd November 2021 

  • ICRA  Limited  has upgraded  the  rating  of long  term  bank  facilities  availed  by  the  Company  and  Non‐Convertible  Debentures  issued  by  the  Company.
  • Borrowings comprise long-term borrowings (current and non-current) and short term borrowings, as on 31st March 2021, and stood at H 37,859 Mn vis-à-vis H 21,912 Mn the previous year. The Company raised external commercia
  • l borrowings from the promoters to restructure its NPA classified financial instruments, term loans and working capital facilities, loan for ethanol expansion and fresh working capital facilities.


  • Factors for Indian sugar export in SS21–22 

While sugar production has barely grown in the past 10 years, sugar and ethanol consumption continues to grow. With erratic weather conditions in Brazil and Thailand hampering production, Indian exports are likely to benefit from the following factors:

  1. Firm international prices, expected to touch 25 cents/pound by next year.
  2. Early demand indications from buyers; India is the only large global producer with a surplus.
  3. Mills are willing to contract/ supply early. ~4Mn tonnes of contract signed as of 31 Jan 2022.

Key concerns

  1. Availability of ships & containers and high freight costs.
  2. Uncertainty in Afghanistan due to domestic political issues. Afghanistan is a large importer of Indian sugar. Uncertainty in Iran with respect to rupee trade resumption of exports.
  • Why India has put the brakes on exports

A fortnight after India banned wheat export, announced restrictions on the export of sugar to keep a lid on price in the domestic market, this is the first time in six years that the centre has placed a restriction on sugar exports.  The decision will ensure that the closing stock of sugar at the end of sugar season (Sep 30, 2022) remains 60-65 LMT which is two-three months of stocks required for domestic use crushing in the new season starts in the last week of october in Karnataka and in the last week of october to november in Maharashtra and in November in uttar pradesh. 

In an order issued by the Directorate of General of Foreign Trade (DGFT) earlier this week, the Centre said the export of sugar — raw, refined and white — will be placed under the “restricted” category from June 1 till October 31. The decision, the government said, was taken to maintain domestic availability and prevent a surge in prices amid rising global food and oil prices.Citing the DGFT order, the government said in a statement that the season’s exports will be capped up to 100 lakh tonnes (LMT). The current sugar marketing season began in October last year and will end on September 30, 2022.


Shree Renuka has been working on expanding its current ethanol capacity (From 720 KLPD to 1400 KLPD) for which it has planned to invest Rs. 6500 Mn, it endeavours to become a green energy company with a focus on production of biofuel ethanol.



I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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