Balrampur Chini Mills Ltd · NSE:BALRAMCHIN
Balrampur Chini Mills — Investor Presentation (March 2011)
15 slides from Balrampur Chini Mills's investor presentation, March 2011
Slide 1: Balrampur Chini Mills Limited - A Nugget in a Volatile Industry
Balrampur Chini Mills Limited ‐ A Nugget in a “Volatile” Industry
Slide 2: The Global Story - Emerging Trends
The Global Story‐ Emerging Trends • Global sugar demand will increase to 198 mn tonnes in 2021 and 257m by 2030 compared with 168mn tonnes in 2010 • Asia will remain the biggest consumer of sugar, increasing its share of total consumption from around 45% in 2010, to 50% in 2021 • India’s consumption
Slide 3: Global Sugar Production
Global Sugar Production Supply Mismatch Projected Global Sugar Production •Over last 20 years sugar production has risen by 44% to 157mn tonnes 100% 168m 200 m 3% 3% •Global consumption expected to rise to about 260mn tonnes by 2030 7% 8% 90% •Production gap of the additional 90mn tonnes requires to
Slide 4: Chinese Scenario
Chinese Scenario 40 Million tonne Chinese Sugar Consumption 35 Doubling of Consumption and Increasing further •China is one of the 10 largest consuming countries of sugar in the 30 Projections world •During the past 10 years, Chinese sugar consumption has 25 doubled, though Chinese per capita consum
Slide 5: Brazilian Scenario
Brazilian Scenario New mills entering operation in Brazil •Cane production still Largest Exporter expanding in new •Brazil is the world's largest sugar producer and exporter. 35 frontiers as greenfield •Its share of global exports climbed from under 25 percent in 2000‐ projects gradually attain 01 t
Slide 6: Indian Sugar Industry
Indian Sugar Industry
Slide 7: The India Story
The India Story Overview ‐ Indian Sugar Industry Domestic Demand‐Supply Scenario • Around 550 sugar factories in India widely dispersed over Million Tonnes SY07 SY08 SY09 SY10 SY11(E) Maharashtra (37%), UP (27%), Karnataka (13%) and other states Supply/Total Availability 32.2 34.8 22.5 21.0 28.5 • O
Slide 8: Regulatory Scenario
Regulatory Scenario • Concept of Command Area which binds cane farmers and sugar mills to sell and buy from each other ─Sugar producers are not allowed to own cane fields in India ─New sugar mills cannot be set up within 15 km of existing units • Sugar mills have to purchase all the cane sold to the
Slide 9: Regulatory Scenario (contd.)
Regulatory Scenario (contd.) • Cane Pricing ─Formula‐based pricing is the need of the industry ─Report on proposed cane price linkage with sugar price has already submitted by a committee set up by GoI under the chairmanship of Sri T Nandkumar, Former Food Secretary, GoI ─High‐powered committee has
Slide 10: Balrampur Chini Mills Limited
Balrampur Chini Mills Limited
Slide 11: Capacities
Capacities UNITS SUGAR DISTILLERY INSTALLED SALEABLE ORGANIC MANURE (TCD) (KLPD) POWER (MW) POWER (MW) (TONS) BALRAMPUR 12,000 160 40.00 22.25 30,000 TULSIPUR 7,000 ‐ 6.00 ‐ ‐ BABHNAN 10,000 60 12.00 3.00 18,000 HAIDERGARH 5,000 ‐ 23.25 20.25 ‐ RAUZAGAON 8,000 ‐ 30.00 16.00 ‐ AKBARPUR 7,500 ‐ 18.00
Slide 12: Key Value Drivers
Key Value Drivers Level I Level II Level III Business Unit Level Technological Level Operational Level Fully integrated company Second largest sugar crushing capacity Located in India’s second highest sugarcane producing state Superior utilization of fixed assets Latest technology and machinery and
Slide 13: Financials: Segment-wise Turnover
Financials: Segment‐wise Turnover Sept ’10 Sept ’09 Sept ’08 Products Rs. Mn % Rs. Mn % Rs. Mn % Sugar 17,231 84.7 14,456 84.7 11,481 77.0 Alcohol 965 7.7 1,312 7.7 1,675 11.2 Power 1,614 7.4 1,256 7.4 1,739 11.7 Others 23 0.2 26 0.2 14 0.1 Total 19,834 100.0 17,050 100.0 14,909 100.0
Slide 14: Financials: Segment-wise PBIT
Financials: Segment‐wise PBIT Sept ’10 Sept ’09 Sept ’08 Products Rs. Mn % Rs. Mn % Rs. Mn % Sugar 540 65.8 2,495 65.8 458 21.6 Alcohol 230 13.2 499 13.2 651 30.7 Power 844 21.2 803 21.2 1,033 48.7 Others ‐4 ‐0.2 ‐8 ‐0.2 ‐20 ‐0.9 Total 1,610 100.0 3,790 100.0 2,123 100.0
Slide 15: Going Forward
Going Forward • Current Long Term Debt of Rs. 786 cr Î Expect debt free status in 2 years • No visible high capex expansion Î Cash flows can be used for driving shareholder value
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