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Nurturing self-sufficiency… Through our Sugar business

Our leadership in the sugar industry is driven by:

Product quality

Seamless value chain

Mutual trust and long-term relationships with 3,00,000+ farmers

Our state-of-the-art manufacturing units are:

Located strategically in the sugarcane-rich belt of Uttar Pradesh

Equipped to deliver integrated operations, encompassing sugar, co-generation and alcohol businesses

Sugar industry’s contribution to Indian economy

The Indian sugar industry - the second largest in the world, is a key driver of rural development, supporting India’s economic growth. It plays a vital role in the betterment of life in the sugar mill command areas. It is estimated that India’s sugar industry impacts the rural livelihood of about 50 million sugarcane farmers.

1.1%

Contribution to India’s GDP

Employment Generation

In ancillary activities related to logistics, repairs and maintenance, supply chain & supply of agriculture inputs.

1.0%

Contribution of sugar/jaggery to daily individual calorie intake

Green Energy

Contribution by sugarcane in the form of bioethanol, bioelectricity

OUR APPROACH TOWARDS AGRI SELF-RELIANCE

Strengthen our farmer relations to boost production, yield and enhance farmer’s income, thus uplifting and empowering the country’s rural population

Improve processes to produce high quality sugar and double capacity for pharma sugar to maximise the overall sugar realisation price

Expand Alcohol business to support the Government’s ethanol blending programme to create a more sustainable future by lowering emissions and reducing import dependence

AUGMENTING OUR FARMER RELATIONS

At TEIL, we have an extensive cane development programme in place, facilitating the inclusive development and progress of our over 3 lakh farmer partners. We are working closely with the farmers in the command areas of our sugar manufacturing units, which are strategically located in:

>1,98,000

Hectare area under Sugarcane

>3,00,000

Farmer network

Map not to scale

DURING FY 2021-22, WE:

Worked aggressively on our cane development initiatives to maximise sugarcane yield and crush.

Invested in several socio-economic empowerment initiatives to transform the lives of our farmer associates; Stayed focussed on - knowledge-sharing and awareness, technology support, training modules, livelihood enhancement initiatives and soil health programmes.

Continued helping the farmers with the procurement of high-quality and/or new varieties of sugarcane seeds, as well as agro-inputs, at subsidised rates.

MAKING SUGARCANE FARMING MORE SUSTAINABLE

To help boost sugarcane productivity – a win-win situation for the Company and the farmers - we are propagating new high sugared, high yielding varieties of sugarcane varieties to lower dependence on the most widely cultivated Co 0238, which has become susceptible to diseases at some of our units.

We have identified some new varieties, such as Co 118 & Co 15023, amongst some other existing varieties e.g. Co 98014, Co J88 etc., for propagation at our units

We have identified different sets of varieties to mitigate climatic and topographical challenges specific to different regions where our sugar units are located

We have signed an agreement with Sugarcane Breeding Institute, Coimbatore, for varietal evaluation and selection Trials

8.41 Million Tonnes

Sugarcane crushed (In SS 2021-22)

0.89 Million Tonnes

Sugar production (in SS 2021-22)

11.70%

Gross sugar recovery (In SS 2021-22)

35,020 ₹/MT

Domestic Realisation Price (In FY 22)

Expanding our Alcohol business

In July 2021, the Indian Government announced its decision to advance the target of 20% as per the Ethanol Blended Petrol (EBP) Programme to 2025 (from the earlier 2030). The move has set the stage for the nation to reduce its fuel import bill by diverting sugar, utilising other feedstocks for the production of ethanol, providing stability of income to farmers and sugar mills.

20%

Government of India’s ethanol blending target for petrol by 2025

10.04%

All India Blending (till June 5, 2022)

OUR APPROACH TOWARDS ALCOHOL BUSINESS

PRODUCING

Fuel-Grade Ethanol & ENA (which is used to produce Potable Alcohol)

INDUSTRIES SERVED

Oil marketing companies

Alcohol-based chemicals

Liquor industry

TOTAL CURRENT CAPACITY – 520 KLPD

Muzaffarnagar distillery - MZN (160 KLPD)

High-quality Fuel-grade Ethanol, Extra Neutral Alcohol (ENA), Indian Made Indian Liquor (IMIL)

Sabitgarh distillery - SBT (200 KLPD)

High-quality Fuel-Grade Ethanol

Milak Narayanpur distillery (160 KLPD)

Multi feed, High quality Fuel Grade Ethanol

Invested in expanding our distillation capacities through greenfield and brownfield projects

Existing 160 KLPD Distillery at Sabitgarh expanded to 200 KLPD

There are plans to enhance the capacity of MZN and MNP distillery to 200 KLPD each during FY 23

Grain-based facility of 60 KLPD to be commissioned shortly at existing distillery complex at Muzaffarnagar (U.P.)

RECENT DEVELOPMENTS

Commissioned greenfield multi-feed 160 KLPD distillery at Milak Narayanpur at the beginning of April 2022. The Company also enhanced operations at Sabitgarh from 160 KLPD to 200 KLPD. With these developments, the current distillation capacity of the Company is at 520 KLPD

We are at an advanced stage to commission 60 KLPD grain distillery at MZN. The overall capacity will be further expanded through debottlenecking and brownfield projects to 660 KLPD by July 2022

OUR VALUE-ADDED PRODUCT PROPOSITION

DISTILLERS DRIED GRAIN SOLUBLES (DDGS)
New distilleries at Milak Narayanpur & Muzaffarnagar will help us enhance our value proposition through their partial/full operations on grains.

The by-product of grain-based operations, DDGS, is a kind of high protein fodder made from grains after fermentation with yeast to produce Ethanol

It provides a good amount of protein, fibres and other nutrients, and is a food supplement for poultry, cattle feed, livestock, aquatic products, etc.

With no branded DDGS currently in the market, the potential for boosting our revenues and enabling reduce our carbon footprint with these new plants is significant

FLY ASH
We convert the waste generated from the Incineration boilers into revenue generating fertiliser:

Potash-rich fly ash is used as a fertilizer for all types of crops in India

The process of conversion of molasses to ethanol generates spent wash (an effluent) which upon concentration is called Slop, which is used as fuel in the Incineration boilers which leads to fly ash generation which is rich in potash

The sale of the potash rich fly ash which is used as a fertilizer will boost the distillery’s revenue and reduce foreign exchange as potash is completely imported in India

ALCOHOLIC BEVERAGES
Our new grain-based distillery at our Muzaffarnagar Alcoholic Beverages (Alcobev) complex will have a capacity of 60 KLPD. It can produce superior grade ENA with Broken/Damaged Rice as a feedstock. We will have the option to produce ENA and Ethanol on the basis of product economics. The Grain ENA produced will be supplied to Indian Made Foreign Liquor (IMFL) manufacturers across UP. It may also be used for captive consumption.

Commenced bottling operations for a major IMFL brand

Approval in hand to process ENA up to 80 lakh litres for manufacture of IMIL

CO2

During the fermentation process of the alcohol manufacturing, carbon dioxide is generated as a by-product. This carbon dioxide can be captured, purified, liquified and put into cylinders or converted into dry ice. The Company has set up a carbon dioxide capturing unit at its Sabitgarh distillery on a BOO basis. The Company is paid for the raw carbon dioxide so supplied, which helps to earn additional revenues

This is an initiative towards Environment, reduction of emission of Green House Gases (GHG)

95,768 KL

Total ethanol production

83%

Ethanol produced from B-heavy molasses

520*KLPD

Distillery capacities

1,07,604 KL

Total production from existing distilleries

100%

Capacity utilisation at 320 KLPD

90%

Ethanol sales in distillery product mix

1,17,837 KL

Alcohol sales

*During FY 22, the Company operated on 320 KLPD for major part of the year

1,959 Lakh units

Total Power export

104.5 MW

Grid-connected Co-generation capacity (MW)

(During FY 22)


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