Future Out Look for the Financial Year 2021-22:

  • Sugar Segment:

    • The Sustainability of Sugar Industry depends upon availability of quality cane, which is a major concern. To overcome this, your Company constantly encourages the farmers by supplying quality seed, technical assistance, expert opinion and scientific methods of cultivation, drip irrigation, ratoon crop management and other resources like facilitating crop loans, arranging harvesting labour by advancing huge amounts, mechanised harvesting and transport facility of harvested cane to mills.

      For the Crushing season 2021-22, the company targeted to crush 9 lakh tons of Cane out of which 8 Lakh Tons from both factory zone areas and another 1 Lakh Tons recently allotted by the Government of Telangana, from non-zone area totally 9 Lakh Tons. By considering the good monsoon during months of September and October, 2020 and because of the newly completed Reservoirs by Government of Telangana , there is good plantation of cane in both factory zone areas. The company’s continuous relationship with farmers and efforts have paid and the farmers started new plantation in big way from December 2020 and continued till April, 2021. New plantation has been completed in 15,000 Acres . Apart from this, there was another 11,000 acres of Ratoon Crop in both Factory zones. Both New plantation and Ratoon crop combined 26,000 acres of sugar cane is already available for the crushing season 2021-22 commencing from November, 2021. For the crushing season 2021-22, corresponding Fin Year 2021-22, by considering the average yield of 30 to 35 Tons per Acre, it is targeted to crush minimum of 9.00 lakh Tons of Cane with an average Recovery of 11.10 and estimated to produce sugar of 10 Lakh Quintals subject.

      One new plantation crop gives two ratoon Crops. So, for the further two Crushing seasons 2022-23 and 2023-24, corresponding to financial years i.e. 2022-23 and 2023-24 also, the company will crush not less than 9 lakh Tons of Cane and the same will be continued for further years because of Singur Dam filled in full and the newly completed Kaleswaram Project will supply water to Nizamsagar Dam through canals connected with Kondapochamma sagar dam and Mallannasagar dam which will facilitate farmers in meeting their irrigation requirements throughout the year even in the absence of good monsoon in coming years.

      To achieve the target of 9.00 lakh Tons of Cane for 2021-22 season, by considering the advantage of availability of Cane, it was decided to increase the crushing capacity of Nizamsagar Unit from the existing 2500 Tons per day to 3500 Tons per day with a capital cost of Rs 12.00 crores and the capital works are well in progress as per the schedule.

      It is also decided to erect two more new tanks for storage of Molasses at Kamareddy Unit with a capacity of 6,500 Tons each that is a total capacity of 13,000 Tons with a capital cost of Rs 5 crores.

  • Distillery Segment

    • Ethanol:
      • The Govt of India is encouraging Ethanol production in a big way. The target for blending of Ethanol with petrol has increased substantially from 5% to 10% by 2022-23 and from 10% to 20% by 2024-25 and the Ethanol price increased by Central Government. The company started production of Ethanol which is a green fuel for blending with petrol directly from Sugar Syrup in the year 2020-21.

        To take the advantage of higher price of Rs 62.65 per litre of ethanol produced from Sugar Syrup, the company targeted to produce is targeted to produce 93 lakh liters of Ethanol every year commencing from Fin Year 2021-22 onwards of which, 40 lakh litres from Sugar Syrup to supply to Oil Marketing Companies (OMCs) that are IOCL, HPCL and BPCL and another 53 lakh litres of Ethanol from Molasses to supply to Pharma Companies.

    • Co-Gen Power:
      • Another product of sugar industry is generation of green power to supply to grid by using bagasse, a by-product as a fuel. The company has 25 MW capacity Co-Gen Power. The company signed Power Purchase Agreement with the Government of Telangana for supplying excess power to the grid after captive consumption . It is estimated to transmit 3.2 crore units of power to state grid from 2021-22 season on wards after captive consumption.