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Sugar Industry in India

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Sugar Industry in India
TABLE OF CONTENTS
INTRODUCTION 3
KEY CHARACTERISTICS OF SUGAR INDUSTRY 3
KEY SUCCESS FACTORS (KEY PERFORMANCE INDICATORS) 4
PEST ANALYSIS OF SUGAR INDUSTRY IN INDIA 4
PORTERS FIVE FORCE ANALYSIS 8
FACTORS LEADING TO INCREASE IN DEMAND OF SUGAR IN INDIA 12
GLOBAL SUGAR OVERVIEW 12
BY-PRODUCTS 13
FACTORS LEADING TO INDUSTRY ATTRACTIVENESS 14
BIBLIOGRAPHY 15

SUGAR INDUSTRY OF INDIA Introduction
Sugar is extracted from two raw materials beet root and sugarcane , both produce identical refined sugar. Sugar cane accounts for two-third of the raw material used for sugar production in the world and beet root one third balance of the world production. India is the second largest producer of sugar in the world with 10 to 12% production of the world.( Brazil is the first)

In India sugarcane accounts for the key raw material for production of sugar. Maharashtra and Uttar Pradesh account for majority of produce of sugar in India. Sugar industry is the 2nd largest agro-processing industry in India accounting for 1 % of India s GDP for fy2005. India’s cultivation area of 4-4.5 million hectare accounts for India’s 2.7% cropped area. The production of sugar has always been in deficit over the demand with production of only 17.5 million tonne over the 19 million tonne consumption for the year 2005-06 a factor leading to industry attractiveness.

Key Characteristics of Sugar industry:
• Capital intensive
• Government regulated
• Seasonal fluctuation in the industry(demand increases during festive season)
• Raw materials constitute major cost
• No proper substitutes

Key success factors (key performance indicators)
• Capital utilization
• Optimum utilization of by-products for additional revenue
• Captive power generation
• Payments to farmers within the 14 days of supply of sugarcane (as specified by the government),to gain confidence of suppliers(farmers).

PEST ANALYSIS OF SUGAR INDUSTRY IN INDIA

POLITICAL
• In India sugar is


Bibliography: www.iari.com www.indiainfoline.com www.icicidirect.com www.fcamin.nic.in Books : Crafting and executing strategy by Thompson,AA(2005)mcgraw hill publication, 14th edition
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