Page 39 - BCML AR 2019-20

C30.34 per kilograms in 2019-20 against A new 160 KLPD was commissioned in The cogeneration business received a
C29.55 per kilograms in 2018-19. January 2020. BCML bid for the entire setback as the UPERC downward revised
available ethanol supply quantum. the tariff for co-generation power. The
The Company produced a record quantity matter is under litigation and is lying with
of ethanol during the year under review.
Hon’ble High Court.

Outlook

At BCML, some things will not change. sector. The integration of these verticals next year, the net available sugar balance
provides us with a robust operating for market sale would decline to around
We expect to remain Balance Sheet-light. platform. 7.1 million tonnes.
We will continue to focus on our core
business. We will continue to de-risk our India reported an opening stock of During 2020-21, we expect to capitalise
output from market volatility to the extent 14.6 million tonnes on October 1, 2019, on a full year’s working of our newly-
possible. We will strengthen our cane domestic consumption of 25 million commissioned distillery unit in Gularia. The
development activity. We will focus on tonnes, sugar exports of over 5.5 million sugar business is expected to drive cash
enhancing operational efficiency. tonnes and an estimated production of flows through the liquidation of allocated
27 million tonnes. The result is that India’s sugar quotas (domestic and exports);
We possess one of the largest cane closing stock as on 30th September, 2020, the distillery business could emerge as a
crushing capacities in India; our ethanol is expected to decline to around 11.1 game-changer.
capacity is the second largest in Uttar million tonnes. If the government creates
Pradesh and our co-generation capacity a buffer stock of 4 million tonnes for the
is the second largest in the state’s sugar

Overview

I believe that the enhanced stability and predictability of our business model could graduate us from a commodity-based positioning
to a sugar-plus perception that enhances value in the hands of those who own shares in our Company.

Vivek Saraogi, Managing Director

What Niti Aayog yyecommended a one-time to be introduced with a price
R
Task Force had increase in minimum selling stabilisation fund to protect
to say on India’s price (MSP) for sugar to D33/ farmers from realisations below
sugar industry… kilograms (from D31/kilograms) the fair and remunerative price
to unburden mills
(FRP)
yyecommended a cap on yyecommended the
R
R
farmer land use for sugar cane implementation of a scientific
at 85% of the total holding formula suggested by the
C
yyess of D50/quintal C Rangarajan Committee with
(excluding exports) and cash a marginal upward adjustment
incentive of D6,000/hectare for in sugar cane prices, keeping
cane-growing farmers shifting in view the improvement in
to alternative crops recovery rates in the last few
years
yyecommended that a
R
revenue sharing formula needs

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