Vishwaraj Sugar Industries Ltd. · NSE:VISHWARAJ
Vishwaraj Sugar Industries — Investor Presentation (August 2021)
40 slides from Vishwaraj Sugar Industries's investor presentation, Aug 23, 2021
Slide 1: Vishwaraj Sugar Industries Ltd. Investor Presentation
Vishwaraj Sugar Industries Ltd. Investor Presentation w w w. v s i l . c o . i n
Slide 2: Vishwaraj Sugar Industries Limited
Vishwaraj Sugar Industries Limited www. vsil.co.in PAGE | 2
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which has been prepared by Vishwaraj Sugar Industries Ltd. (the “company”), is solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities a
Slide 4: About the Company
About the Company Incorporated in 1995, Vishwaraj Sugar Industries Limited (VSIL) has an integrated sugar and ethanol manufacturing plant in Bellad-Bagewadi, Karnataka. Sugarcane Crushing Capacity of 11,000 MT Per Day Distillery Capacity of 100,000 Litres Per Day Co-Generation Capacity of 36.4MW Vin
Slide 5: Existing Scale of Operations
Existing Scale of Operations Details Present Production Capacity Production/Processed Quantity Sales Quantity Sugarcane Crushing 11,000 MT per day 9,08,000 MT in FY2021 Sugar 1,320 MT per day 79,320 MT in FY2021 94,073 MT in FY2021 8,188 kilo litres (KL) in FY2021 Distillery 1,500 KL u
Slide 6: Key Growth Milestones of the Company
Key Growth Milestones of the Company Vishwaraj Sugar Industries Limited was incorporated 1995 Commenced operations of distillery units such 2001 as ethanol, rectified spirit, and extra neutral Implemented backward integration and began spirit commercial operations for manufacturing sugar, 2006 along
Slide 7: Business Transformation Strategy
Business Transformation Strategy Functional Advantages 1 Technological Prowess 2 Moving Up the Value Chain 3 New industries and clientele targeted in pharmaceuticals, Differentiated processes and product customization Located in the sugarcane rich belt of Belagavi in Karnataka health supplements and
Slide 8: Feedstock Resilience: Plant Location in Sugarcane Rich Belagavi District of Karnataka
Feedstock Resilience: Plant Location in Sugarcane Rich Belagavi District of Karnataka The company is present in the largest sugarcane growing belt of Karnataka, in the Belagavi district. This district alone contributes to more than 50% of the state's annual output of sugarcane, sugar, and ethanol.
Slide 9: Feedstock Resilience: Karnataka is the 3rd Largest Sugarcane Producing State in India
Feedstock Resilience: Karnataka is the 3rd Largest Sugarcane Producing State in India Yield (MT/ha) Sugarcane Production (Million MT) 500 100 300 450 400 80 240 360 300 60 180 270 200 40 120 180 100 20 60 90 0 0 0 0 SS07 SS08 SS09 SS10 SS11 SS12 SS13 SS14 SS15 SS16 SS17 SS18 SS19 SS20 SS07 SS08 SS09
Slide 10: Feedstock Resilience: Cordial Procurement Relationships
Feedstock Resilience: Cordial Procurement Relationships The company has cordial relationships with the farmer community, ensuring adequate and seamless sugarcane procurement during the harvest season. To ensure sourcing adequacy, the company ensures timely payment to the farmers and motivate and
Slide 11: Feedstock Resilience: Benign Sugar Industry Outlook in the Near Term
Feedstock Resilience: Benign Sugar Industry Outlook in the Near Term World sugarcane production is projected to grow by 1% per annum and reach 1,960 million MT by 2030. Brazil and India Sugar Production (Million MT) are anticipated to contribute 65% of the change in global 50 2018-20 2030 output v
Slide 12: Differentiated Processes and Product Customization Capabilities
Differentiated Processes and Product Customization Capabilities 1 The company has an in-house R&D team that has proven its technological prowess by reengineering sugar and ethanol production processes by a patented process beginning from the time of sugarcane crushing itself. 2 System and process pa
Slide 13: Multiple Revenue Pathways: Sugar Segment
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Sugar Segment Conventional Sugar Business of the Company Sugarcane Processing Capacity: The company has a sugarcane crushing capacity of 11,000 MT per day. Types of Sugar Produced and Sold Till Recently: The sugar produced is diff
Slide 14: Multiple Revenue Pathways: Sugar Segment
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Sugar Segment New Revenue Pathways Enabling to Move up the Value Chain Process Reengineering: The process reengineering implemented by the company leads to a bacteria-and-pathogen-free superior grade sugar and ethanol meeting the
Slide 15: Pharmaceutical Grade Sugar
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Sugar Segment Pharmaceutical Grade Sugar In the pharmaceuticals industry, sugar often plays the role of an excipient, an inactive substance used as a dose carrier for the active drug. Its functions range from adding bulk and consi
Slide 16: Multiple Revenue Pathways: Ethanol Segment
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Ethanol Segment Conventional Ethanol Business of the Company 1 The company manufactures rectified spirit and ethanol from molasses / sugarcane syrup. 2 Rectified spirit is a highly concentrated spirit which is purified through dis
Slide 17: Multiple Revenue Pathways: Ethanol Segment
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Ethanol Segment New Revenue Pathways Enabling to Move up the Value Chain Moving up the value chain, the company is gradually moving its target market from OMCs to pharmaceuticals, 1 health supplements and nutraceuticals, and beaut
Slide 18: Pharma Grade Ethanol
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Ethanol Segment Pharma Grade Ethanol Ethanol 99.9% at a GMP-grade can be used in preparations that can be injected into the body or bloodstream. Furthermore, this pharmaceutical ethanol can be used as a solvent in laboratory use
Slide 19: Target Industry: Pharmaceuticals Industry
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Pharmaceuticals Industry New Target Industry 1: Indian Pharmaceuticals Industry According to the Economic Survey of India data released in 2021, the Indian Pharmaceuticals Industry (US$ Billion) domestic pharmaceuticals market i
Slide 20: Target Industry: Health Supplements and Nutraceuticals Market
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Health Supplements and Nutraceuticals Market New Target Industry 2: Health Supplements and Nutraceuticals Market By the end of 2025, India’s nutraceuticals market is expected to grow from an estimated US$ 4 billion to US$ Indian
Slide 21: Target Industry: Beauty and Personal Care Market in India
Multiple Revenue Pathways, and New Industries and Clientele Targeted: Beauty and Personal Care Market in India New Target Industry 3: Beauty and Personal Care Market in India According to Statista, India’s beauty and personal care market is Indian Beauty and Personal Care Market (US$ Billion) esti
Slide 22: Enhanced Geographical Reach and Competitiveness
Enhanced Geographical Reach and Competitiveness Industry wide Industry In-house In-house In-house Scenarios best case wide best Increasing Realization Per Tonne of Sugarcane Crushed scenario case scenario Developed Developed Developed Integrated Ethanol Only Pharma Pharma Optimal Mix Details Sugar F
Slide 23: Enhanced Market Reach
Enhanced Geographical Reach and Competitiveness Enhanced Market Reach Foray in higher-value products, and lower cost of production Baddi enables exploring new geographies and industries within the Pantanagar range of 600 kms from the factory. This move will enable the Haridwar NCR company to cater
Slide 24: Plant Upgradation and Capex Optimization
Plant Upgradation and Capex Optimization Plant Upgradation The company is investing about INR 25 crore to implement the process reengineering and improvisation backed by plant upgradation for achieving the desired quality levels and meeting the standards requirement for producing pharma grade sugar
Slide 25: Low Operational Leverage
Low Operational Leverage Apart from capex reduction, the company's process optimization has helped to save operating expenditure as well. On an operational and production level, the company saves costs on steam, labour, power, and chemicals, making it more competitive. Reduced Steam Consumption 1 Re
Slide 26: Low Operational Leverage
Low Operational Leverage Enhanced Fermentation Efficiency 3 Calculations and Economics for Enhanced Ethanol Production 4 As the sugarcane syrup/molasses is coming from the About 4 MT of sugarcane need to be crushed to derive one tonne of syrup. patented process, fermentation yield for ethanol ha
Slide 27: Capacity Expansion Plan: Brownfield Project
Capacity Expansion Plan: Brownfield Project 01 02 03 04 Brownfield Project Increase in capacity Timeframe Funding The company plans to set up This will increase the overall The estimated investment is A mix of equity and debt shall fund the a brownfield ethanol ethanol production capacity INR 150 cr
Slide 28: Capacity Expansion Plan: Greenfield Project
Capacity Expansion Plan: Greenfield Project New Project: The company has also applied to the government of Karnataka for issuing distance certificate for setting 01 up a greenfield ethanol production facility within 80 kms from the existing factory in the Belagavi district itself. Evaluation: The st
Slide 29: Capacity Expansion Plan: Greenfield Project
Capacity Expansion Plan: Greenfield Project Speed-up Approval Process: This objective is to get permission for smaller scale of operations from the state 06 government itself, which is a relatively faster process. Strategic Plan: For expanding the scale beyond this capacity, the company will need to
Slide 30: Exploration of New Product Verticals: Natural Alcohol Vinegar
Exploration of New Product Verticals: Additional Revenue Generation Avenues Natural Alcohol Vinegar Vinegar: The company has diversified its operations to produce natural alcohol vinegar by fermentation of alcohol 1 produced in the distillery. 2 Production Capacity: The vinegar production facility i
Slide 31: Exploration of New Product Verticals: Branded Refined Sulphur-free Sugar
Exploration of New Product Verticals: Additional Revenue Generation Avenues Branded Refined Sulphur-free Sugar Pharma Grade Sugar: Due to in-house R&D efforts and achieved process reengineering, the company’s sugar produce 1 automatically gets classified as pharma-grade sugar. Optimize Sales Realiza
Slide 32: Power Self-Sufficiency and Stable Stream of Revenue
Power Self-Sufficiency and Stable Stream of Revenue Electricity Production: During sugar manufacturing from sugarcane, bagasse is generated, which is used as a bio-fuel for boilers to generate steam and for the rotation of turbines and further to generate electricity. The co-generation unit has a to
Slide 33: Passive Income From Leasing of IML Facility
Passive Income From Leasing of IML (Indian Made Liquor) Facility Diversion The company used to manufacture IML; however, after the expansion of distillation capacity in the year 2020, the company shifted its focus towards manufacturing anhydrous ethanol for supplying it to the OMCs and stopped manuf
Slide 34: Talented Team, Experienced and Seasoned Management
Talented Team, Experienced and Seasoned Management Talented Team Coupled with Experienced and Seasoned Management to Steer the Company in the Right Growth Path The team of seasoned and visionary professionals steers the strategic path of the company to excel in the business operations. The talented
Slide 35: Enhanced Financial Control and Credibility
Enhanced Financial Control and Credibility Efficient Management Vision The company efficiently manages its low-cost debt and The lower-than-usual profitability during the covid times has intends to gradually reduce the leverage through prudent impacted the overall credit rating of the company. Activ
Slide 36: Driving Growth: Focus on High-Value High-Margin Products in New Industry Segments
Driving Growth: Focus on High-Value High-Margin Products in New Industry Segments Distinguished Business Strategy: Moving up from a commoditized business to value-added products, the company is stepping up the value chain in terms of produce and end-user industries, which essentially means higher pr
Slide 37: Driving Growth: Enhanced Operational Efficiencies
Driving Growth: Enhanced Operational Efficiencies Operational Cost Savings Capex Optimization Enhanced Competitiveness The company's process optimization has As a result of implementing the process Bypassing to setup the sugar refinery has helped to save operating expenditure as reengineering, the c
Slide 38: Driving Growth: Expansion Plans
Driving Growth: Expansion Plans Near Term Goal In the near term, the company's objective is to enhance the capacity utilization rate of the plant and step up the value chain optimizing higher revenue per tonne of sugarcane crushed and reduce the overall costs to make the operations more profitable
Slide 39: Driving Growth: Expansion Plans
Driving Growth: Expansion Plans Brownfield Expansion Additional ethanol production capacity of 150,000 litres per day in the existing premises. The estimated investment is INR 150 crore, and it will need two years to set up the plant. The first full year of operation for this facility shall be F
Slide 40: Contact Details
Contact Details Bellad Bagewadi, Taluka Hukkeri, District Belagavi - 591305 +91 - 8333 - 251251 +91 - 8333 - 251322 info@vsil.co.in www. vsil.co.in P A G E | 40
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