Page 55 - BCML AR 2019-20
P. 55

Segment analysis

               Sugar















                                            Overview

                                          Balrampur Chini Mills is the second largest   manufacturers on the one hand and
                                          sugar manufacturing company in India with   delivering among the best sugar quality
                   4513.11                a cumulative crushing capacity of 76500   standards on the other.
                                          tonnes of cane per day.
                                                                             The Company has eight manufacturing
                                          The business is the largest within the   plants in Eastern Uttar Pradesh and two
                                          Company and a platform that generates   in Central Uttar Pradesh. Most plants are
                                          value for downstream businesses like   proximate, facilitating economies of cane
                                          ethanol and co-generation. Over the   procurement, resource transfer and logistics.
               C crore, Revenues, 2019-20,   years, the Company has earned respect
                 C3821.59 crore in 2018-19
                                          for being one of the most efficient sugar


                                            Strengths

                                          Scale: The Company is among the largest   Energy reduction: Process efficiency
                                          sugar manufacturers in Uttar Pradesh,   helped the Company moderate energy
                  81.69%                  capitalising on superior economies of scale.   consumption.

                                          Geography: The Company’s manufacturing   Quality: Efficient operations and stringent
                                          units in the Eastern and Central Uttar   quality checks enabled the Company
                                          Pradesh has superior cane quality.   to produce superior sugar quality,
                                                                             commanding better realisations
                                          Cane management: The Company
                 Proportion of overall    facilitates the availability of superior seeds   Farmer-friendly:  More than 90% of the
                2019-20 revenues from     and quality agri-inputs to farmers, resulting   Company’s command area is covered with
                        sugar             in superior cane quality and one of the best   early maturing seeds.
                   (77.78% in 2018-19)    recoveries in Uttar Pradesh.
                                          Evangelist: The Company is encouraging
                                          mechanised farming in exchange for better
                                          yields.

                                            Operational highlights, 2019-20

                                          y yCrushed 102.03 lac tonnes of cane (110.36   y ynitiated cost optimisation projects across
                                                                              I
                                          lac tonnes in 2018-19)             plants
                                          y yAchieved sugar recovery of 11.93%,   y yUndertook cane development, enhancing
                                          compared to 11.58% in 2018-19      yields in command areas
                                          y yHigh recovery was driven by plant   y yExported 2.6 lac tonnes of sugar (revenues
                                          efficiency, effective cane management  and   of C548.68 crore)
                                          growing coverage of early-maturing cane
                                          varieties

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