One of the Leaders in the Indian Industry
The sugar industry in India is highly fragmented with over 500 sugar factories. We are amongst the three largest producers of sugar in India based on sugar production in Sugar Year 2003-2004 derived from ISMA Working Results of Sugar Factories in India, 2003-2004. We manufactured 0.38 million tonnes of sugar in the Sugar Year 2005.

Strong Financial Position
We have a strong financial position, which we believe will enable us to finance our capacity expansion plans. As of March 31, 2005, we had a long-term debt to equity ratio of 0.72: 1 and total debt to equity ratio of 2.74:1. In fiscal 2005, we have net cash flow from operating activities of Rs. 1,414.42 million.

Strategic Location of Mills
All of our manufacturing facilities for sugar production are located in the north Indian state of Uttar Pradesh and the two largest sugar mills at Khatauli and Deoband are located in western Uttar Pradesh, which is one of the largest sugarcane growing areas in India. As a result of our presence in the state of Uttar Pradesh, we benefit from the following advantages.

Proximity of Sugarcane Deficient Markets
Our sugar mills are located close to the sugarcane deficient markets of Punjab, Haryana, Delhi, Madhya Pradesh, Rajasthan, Gujarat and West Bengal. Thus, our primary markets are located close to our manufacturing facilities and we do not rely on transporting our sugar to distant markets, which gives us a comparative advantage in distribution costs of this bulk commodity.

Excellent Rrelationships with Farmers
We make timely payments to sugarcane farmers and have built excellent relationships and goodwill with them, which is an important factor in our industry. We have a good record of payments to farmers for sugarcane despite the cyclical nature of the sugar industry and have strong ties with approximately 167,000 sugarcane farmers.

Extensive Network for Sugarcane Collection
In order to facilitate the sale of sugarcane to us by the sugarcane farmers, we have established a extensive network of more than 350 collection centers in the state of Uttar Pradesh, where the sugarcane is collected by us and payments are made to farmers. These collection centers are located in our sugarcane area and hence, the farmer is not required to bring his crop to our factory gates.

Good Product Quality
The sugar produced by our sugar mills in Khatauli and Deoband is bold grained and is rated as one of the better qualities of sugar produced in western Uttar Pradesh. This enables us to command a premium on the sugar produced by us.