Management Discussion and Analysis


Key highlights of our Sugar business performance in SS 2022-23:

  • Impact of CapEx programme undertaken: Planned CapEx related to the modernisation, debottlenecking, rationalisation of capacities and efficiency improvement activities at Khatauli, Deoband & Sabitgarh sugar units, process conversion at Deoband unit to produce refined sugar, and increase in pharma sugar production capacity at Sabitgarh unit. This resulted in:
    • A higher crush rate across all three units, which helped the Company record the highest-ever sugarcane crush in SS 2022-23 at 9.33 million tonnes, an increase of 11% over the previous season. The Company for the first time, crossed the 900 LQ total crush figure.
    • The refined sugar production increased from ~40% last year to ~60% in SS 2022-23. The quality of sugar produced at Deoband unit in SS 2022-23 improved significantly, fetching a premium over normal sugar.
    • The Sabitgarh sugar unit produced the highest pharmaceutical sugar quantity in its history.
    • Khatauli unit became the highest sugar production unit in the country.
  • Production of export quality S-grain sugar was undertaken at Khatauli & Sabitgarh sugar units with superior realisations. Both the units together successfully produced approximately 12.5 lakh quintals of export quality S-grain sugar, which was well accepted.
  • Sugar exports contributed significantly to the profitability. The Company achieved sugar exports of 1,90,337 tonnes (including sale of quota for 72,988 tonnes) during FY 23, out of the total export quota of 2,04,868 tonnes at record realisations.
  • Due to climatic factors and late October rains, the recoveries were impacted across the States and also in our units. The Company reported net recovery of 10.23% with 92% of sugarcane crush with B-heavy diversion in SS 2022-23 vs. 84% in the previous season. The Company is still among the leading performers in terms of recoveries with B-heavy diversion.
  • Six of the seven sugar units operated with the B-heavy diversion process from the very beginning of SS 2022-23.
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