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...
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...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
Sugar was first grown in New Guinea around 9000 years ago, which New guinea traders trade cane stalks to different parts of the world. In the New world christopher columbus introduced cane sugar to caribbean islands. At first sugar was unknown in Europe but was changed when sugar trade first began. Sugar trade was driven by the factors of production land which provided all natural resources labor what provided human resources for work and capital which includes all the factories and the money that’s used to buy land. Consumer demand was why sugar trade continued to increase.
Slave labor is the final factor that drove the sugar trade and made it so successful. Slaves were the manual laborers on the plantations, doing the actual harvesting and boiling because the owner wasn’t there to do so (Document 8). Without the slaves working the farm, everything was pretty much useless. There is also a direct correlation between the number of slaves and the tons of sugar produced. This is shown in Document 9, where the island of Jamaica starts out with 45,000 slaves, and produces 4,782 tons of sugar. When the number of slaves increases by less than half to 74,500, the amount of sugar produced is more than tripled at 15, 972 tons. This clearly exhibits how slaves were essential to sugar
was only eight years old. Raw sugar was then imported to the Imperial Sugar Company refinery in Sugar Land. By the 1940s the population
The intriguing concept of supply and demand in the Louisiana sugar cane industry would be described as resilience. Louisiana’s sugar industry dates back to the turn of the 18th century. How can such a bountiful crop have such a stagnant return? One example of resilience is the sugar factory M.A. Patout and sons. This is the oldest and largest sugar factory in Louisiana that is still family owned and operated. The factory was originally founded in 1825 as a wine vineyard, being later converted to a sugar plantation due to south Louisiana’s subtropical climate. It has seen the rise and fall of sugar prices that have plagued area mills and farmers, forcing many out of business.
Suprisingly, for something so desireable knowledge of sugar cane spread vey slow. First found in Guinea and first farmed in India (sources vary on this), knowledge of it would only arrive in Europe thousands of years later. However, there is more to the history of sugar cane than a simple story of how something was adopted piecemeal into various cultures. Rather the history of sugar, with regards to this question, really only takes off with its introduction to Europe. First exposed to the delights of sugar cane during the crusades, Europeans quickly acquired a taste for this sweet substance.
The sugar beet currently grown is far removed from the garden plant. Later the root became a popular vegetable, especially the red type of beet known as beetroot. In the second half of the eighteenth century the chemist Marggraf demonstrated that the sweet tasting crystals obtained from juice of beets and sugar cane were similar, this was the first step in developing beets into an industrial crop for extraction of sugar. Before that time nobody paid much attention to what gave the roots their sweetness. Beets with higher levels of sucrose were selected from a white fodder beet variety. The White Silesian variety is still considered to be the primary source of sugar beet germplasm grown today (Fischer 1989).
Geographically, sugar made its way around the world rather rapidly once it first left Indonesia. Sugar cane was first found in New Guinea around 8000 BC. One of the most significant causes that came out of sugar production was the Atlantic Slave Trade. “The vast majority of the African captives transported across the Atlantic, some 80 percent or more, ended up in Brazil and the Caribbean (Strayer 568).”
Originally, sugar started in Southwest Asia and made its way to the New World by Christopher Columbus in 1492. He started to grow it in this new tropical environment and the plant grew rapidly. Due to the success of this plant, other colonies wanted to get their hands on it. The colonists spread the plant out to the European colonies, Spanish colonies, and the Portuguese brought sugar to Brazil. Sugar made its way all around the world.
Despite the federal aid granted to sugar growers, not all sectors of agriculture devoted to growing sugar derivatives flourished. Domestic production of sugar cane increased steadily from 1982 onward, while sugar beet production stagnated (Knutson, 1985). Through time, the largest number of sugar beet farmers were concentrated in a specific West/Midwest region of the U.S. (Minnesota, North Dakota, Idaho) while sugar cane farmers were found in the Southeast, specifically Louisiana and Florida.
Maple trees first originated in China or Japan, and expand into about 100 species. " Of the four North American species good for sugaring, the hard or rock maple, Acer Saccharum, produces sap of greater quality and in greater quantity than the others and accounts for most of the syrup produced today." (On Food and Cooking, pg. 383).
By 700 A.D., it was seen that sugar was diffused to the Mediterranean region by Islamic expansion and trade as sucrose was viewed as an exotic spice and medicine (Nunn, Nathan). In 1452, Portuguese sugar production began on Madeira, an uninhabited island off the northwest coast of Africa. Indigenous peoples were the first workers brought to island of Madeira to work on the sugar mills, but the need for labor was too much. To get help with more labor, the enslaved African Americans were brought in and they became the main labor force for the sugar industry. By 1500, Madeira became the largest exporter of sugar in the world (Dunn, R.). With the success of the cash crop and the labor provided by the African Americans, sugar production was seen to have spread to other Atlantic islands; first it was the Canaries, then Santiago in the Cape Verde islands but these islands lacked the required rainfall for good cane culture. This is where the Portuguese, and then later the Spanish, Dutch, and English came to set their sights on other areas to continue this white gold sugar industry hoping to expand the production and gain
In document 7a, it tells when sugar got attention worldwide rich people started moving to the West Indies to grow because everyone wanted sugar and sugar makes you a lot of money. The more you consume sugar, the more you will start to
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).
China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the area of trade, three major strengths of China are 1) it is the single most important challenge for the European Union (EU) trade policy, 2) China is the second trade partner behind the U.S., and 3) it is the EU’s biggest source of imports by far with the dramatic increase in the EU-China trades over the recent years. The EU exports of goods to China were 113.1 billion Euros and in imports was 281.9 billion Euros in 2010. The service exports were 18 billion Euros and in imports were 13 billion Euros in 2009. China has also established trades with Australia. Recently, the two countries have been cooperating and assisting each other in industries such as agriculture, energy and minerals as they continue their free trade agreements (Jia Qinglin).
Sugar, like many other tradeable goods, was circulated through a variety of regions for over a thousand years. As trade and transportation created opportunities for more interactions between locations, sugar was introduced to places that it had been previously unknown. In the sixteenth century, Europe, specifically England, took a large interest in sugar, first serving as a luxury for the elite class but eventually evolving into a good available to all social classes. The high demand for sugar led to the expansion of sugar production, an increase in African slavery, and implemented a significant system of trade.