Vishwaraj Sugar Industries Limited
ABOUT THE COMPANY
- Company deals in manufacturing of sugar and other related products employed in Belgaum District in Karnataka. It is assigned a status of “ High Recovery Zone “ for sugar production by government of India.
- Company has five business segments namely Sugar, Co-Generation, Distillery, Indian Made Liquor (IML) and Vinegar.
- Company began its operation in 2001 starting from 2001 mainly concentrating on distillation and manufacturing of products such as Ethanol, Rectified spirit etc.
- Major technological and commercial upgrades took place during 2006 and 2008 such as backward integration, Cogeneration and bottling of the Indian made liquor.
- Company has expanded significantly over last few years and currently it is holding 950 employees as of May 31,2019.
- ENHANCING THE OVERALL EFFICIENCY
The products processed in the company are interconnected so the efficiency of one product depends upon its parent product’s efficiency. Thus the company focuses on improving the overall as well as part wise efficiency of the whole production chain.
- GEOGRAPHICAL EXPANSION OF THE COMPANY
Company focusing on the geographical expansion at the places with high sugarcane cultivation and the areas where the yield is most compatible with the processing of the final and other by products.
- FOCUS ON INCREASING MORE IML PRODUCTS
Currently the company is only manufacturing bottled whisky but it plans to expand this segment of the industry by launching more IML products like Rum, Gin and Vodka. In order to increase the revenue percentage of IML products in the overall annual revenue.
- ESCALATING THE FUND BASED CAPACITIES FOR FURTHER EXPANSION
To increase the liquidity in the balance sheets company aims to raise funds through this issue because the sugarcane industry is highly affected by the fund based factors such as high debts and advanced payments to farmers and harvesting and transportation agents.
INITIAL PUBLIC OFFERING
|BID/OFFER OPENS ON||Sept 30,2019|
|ISSUE TYPE||Book Built Issue|
|BID/OFFER CLOSES ON||Oct 4,2019|
|ISSUE SIZE||Rs 60 Cr.|
|ISSUE PRICE||Rs55-Rs60 per Eq. Share|
|FACE VALUE||Rs 10 per Eq. Share|
|MARKET LOT||240 Shares|
|LISTING AT||BSE, NSE|
LIST OF PROMOTERS
- Umesh Katti
- Sheela Katti
- Ramesh Katti
- Jayashree Katti
- Nikhil Katti
- Lava Katti
- Kush Katti
- Mrs. Sneha Nithin Dev
Top 10 Shareholder of the Company as on the date of this Red Herring Prospectus:
|Name of Shareholder||No. of Equity Shares||Percentage of pre-offer capital (%)|
INDIAN SUGAR INDUSTRY
India is going to record a bump in the Sugar production industry with 32-34 MMT production VS the consumption of 25-26 MMT in the very next season.
There is an expected rise of 4.2% in the production with Uttar Pradesh leading as the largest producer nationwide.
Statistics as on 15th December 2018, 462 sugar mills were crushing sugarcane all over the country. 70.52 lakh tons of Sugar produced which is 2.1% higher than that of the last sugar season. Also at the same time last year 476 mills were operating.
Forecast predicting the rise of 4.3% making a record production of 33.8 MMT which includes 0.56 MMT of a local type of low recovery sugar.
BAGASSE CO-GENERATION INDUSTRY IN INDIA
States which have taken leadership position in implementation of bagasse cogeneration projects are Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh.
INDIAN MADE FOREIGN LIQUOR (IMFC)
The Indian Liquor industry comprises the Indian made Foreign Liquor (IMFL), country liquor, foreign liquor bottled in origin (BIO), illicit alcohol, beer and wine segments.
The overall IML market is increasing at the rate of 9 to 10%.
The Indian liquor market is mainly concentrated in the southern part got the country. With the region accounting for about 60% of total IML sales and 45% of total beer sales. Andhra Pradesh is the largest consumer of the both while Karnataka and Maharashtra are second largest consumers of IML and beer respectively.
SUGAR BASED DISTILLERY/ETHANOL INDUSTRY
The most prominent key by-product of the sugar mill industry. India has almost 330 distilleries which can produce over 4 billion litres of rectified spirit (alcohole) per year, of these almost 162 distilleries have the capacity to distil over 200 Cr litres of conventional bio-ethanol. India produces conventional bio-ethanol mostly from sugar molasses & partly from grains.
(Amount in Rs.lakhs)
|As at March 31||Total Income||Total Expenses||Profit/(Loss) After Tax||Total Assets||Total Non Current Liabilities|
Total Income & Total Expenses
Profit/(Loss) After Tax
Total Non Current Liabilities
|Year||Earning/Loss per share"EPS"(In Rs.)||Return on Networth"RoNW"(In %)|
Earning/Loss per share"EPS"(In Rs.)
Return on Networth"RoNW"(In %)
MAJOR INDUSTRY PLAYERS & COMPARISON
(WITH LISTED PEER)
Name of Company
|EPS [Rs.]||P/E ratio||RoNW [%]||NAV Per Share [Rs.]|
|Ugar Sugar Works Ltd.||0.39||33.08||8.05||4.54|
|Dwarikesh Sugar Industries Ltd.||5.05||4.45||20.51||24.62|
|Balrampur Chini Mills Ltd.||24.98||5.67||27.40||91.19|
|Dhampur Sugar Mill Ltd.||38.40||4.17||20.51||187.07|
|Vishwaraj Sugar Industries Ltd.||(5.10)||N.A||(8.33)||61.20|
NAV Per Share [Rs.]
- VISHWARAJ SUGAR INDUSTRIES LIMITED. Red Herring Prospectus.