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Sugar industry in India to reach INR 1,033.5 billion by FY’2020: Ken Research
Future Growth of India sugar market is expected to be led by increasing sugarcane yield, rising demand of sugar by the consumers and increasing sugar recovery rate.
· Future Growth of India sugar market is expected to be led by increasing sugarcane yield, rising demand of sugar by the consumers and increasing sugar recovery rate.
· Shree Renuka Sugars is one of the largest producer of sugar in the country with rising demand from other countries competes with other players in the industry such as, Bajaj Hindusthan, Balrampur Chini Mills Ltd and Dhampur Sugar Mills
Ken Research announced its latest publication on “India Sugar Market Outlook to 2020” which provides a comprehensive analysis of the various aspects such as market size of the sugar industry by value and production volume in India. The market is segmented on the basis of organizational structure, by state wise sugar production, by utility, by type of sugar and by type of distribution channels have been covered in the report. The report also includes the market shares and revenues of major sugar companies in India.
One of the major highlights of the report is the Investment Model of the sugar industry which talks about the various investments that are required to set up a sugar factory in India. The report also entails a snapshot on sugarcane and sugar free sucrose market comprehensively. The future outlook of the sugar industry with the major growth drivers and challenges, porter’s five forces, SWOT analysis and macroeconomic variables are presented in the report. This report will help industry consultants, sugar brokers, dealers, mill manufacturers, sugarcane producers, sugar free product players and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
The sugar industry in India has witnessed a growth in recent years on account of rising number of sugar factories in the country as well as the increasing sugarcane yield in the country. The surge in growth of the industry is majorly originated from the rising sugar demand by the consumers as well as the institutional sector and also forms the increasing expenditure on food and beverages. India sugar industry is comprised of large companies such as Shree Renuka Sugars, Bajaj Hindusthan Ltd. and Balrampur Chini Mills which posses the maximum market share in the organized sector. The sugar market in terms of revenues has grown at a CAGR of 5% from FY’2010-FY’2015.
With the decontrolling of sugar in India has raised hopes that the financial health of the industry will improve and new investments will start to flow into the sector both from Indian as well as foreign investors. The stagnant sugar industry of India will then be better placed to take advantage of the new freedom as their interest outgo is lower and higher production will help them do business optimally. The sugar industry is expected to grow at a rate of ~%, doubling its worth to INR ~ lakh Crore by 2018. According to the research report, the sugar market in India will grow at a respectable rate due to the increasing sugarcane yield and dropping sugar prices.
“Incline in number of sugar mills, increasing prospects for sugar beet production, Government Initiatives and Increasing R&D innovations to increase sugarcane yield will drive the industry in the coming years.. Additionally, increase in productivity, enhancement in the crushing season period will probably affect the growth of this industry in the future” According to the Research Associate, Ken Research. The analyst at KenResearch.com recommends that States should encourage development of such market-based long-term contractual arrangements and phase out cane reservation area and bonding.