Essay about Sugar Industry In India

Essay about Sugar Industry In India

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TABLE OF CONTENTS
INTRODUCTION 3
KEY CHARACTERISTICS OF SUGAR INDUSTRY 3
KEY SUCCESS FACTORS (KEY PERFORMANCE INDICATORS) 4
PEST ANALYSIS OF SUGAR INDUSTRY IN INDIA 4
PORTERS FIVE FORCE ANALYSIS 8
FACTORS LEADING TO INCREASE IN DEMAND OF SUGAR IN INDIA 12
GLOBAL SUGAR OVERVIEW 12
BY-PRODUCTS 13
FACTORS LEADING TO INDUSTRY ATTRACTIVENESS 14
BIBLIOGRAPHY 15


SUGAR INDUSTRY OF INDIA

Introduction
Sugar is extracted from two raw materials beet root and sugarcane , both produce identical refined sugar. Sugar cane accounts for two-third of the raw material used for sugar production in the world and beet root one third balance of the world production. India is the second largest producer of sugar in the world with 10 to 12% production of the world.( Brazil is the first)

In India sugarcane accounts for the key raw material for production of sugar. Maharashtra and Uttar Pradesh account for majority of produce of sugar in India. Sugar industry is the 2nd largest agro-processing industry in India accounting for 1 % of India s GDP for fy2005. India’s cultivation area of 4-4.5 million hectare accounts for India’s 2.7% cropped area. The production of sugar has always been in deficit over the demand with production of only 17.5 million tonne over the 19 million tonne consumption for the year 2005-06 a factor leading to industry attractiveness.

Key Characteristics of Sugar industry:
• Capital intensive
• Government regulated
• Seasonal fluctuation in the industry(demand increases during festive season)
• Raw materials constitute major cost
• No proper substitutes


Key success factors (key performance indicators)
• Capital utilization
• Optimum utilization of by-products for additional revenue
• Captive p...


... middle of paper ...


...rts from India by Pakistan
o Export opportunities to countries like bangladesh,indonesia,sri lanka and the middle east as EU used to supply to them earlier
o Rising demand of china
• Production of ethanol
o 5% blending of ethanol with petrol Is already compulsory
o Government is pushing for a compulsion of 10% ethanol
• Baggase cogeneration
o Low capital requirements
o Cheaper than conventional power projects to produce power
• Domestic factors
o Rising domestic demand
o Increasing population
o Rising per capita consumption in India

Bibliography
www.iari.com
www.indiainfoline.com
www.icicidirect.com
www.fcamin.nic.in

Books :
Crafting and executing strategy by Thompson,AA(2005)mcgraw hill publication, 14th edition

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