shree renuka sugars ltd corporate presentation jbims

Pre Placement Presentation at JBIMS5th January 2011

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Shree Renuka Sugars Ltd

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About Shree Renuka Sugars Ltd

• Background• India Production and Refining

Capacity

Brazil Operations

• Vale do Ivai• Renuka do Brasil S/A previously

known as Equipav

Management Team

Financial Performance

What are we looking for?

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o Transnational agribusiness & bio-energy corporation

o 5th largest sugar producer in the world & one of the largest refiners globally

o Leading manufacturer of sugar in India, the world’s largest market

• Operates 7 sugar mills with a total crushing capacity of 35,000 tons crushed per day

• Two large port based sugar refineries with capacity 1.7 mn tons per annum

o Significant presence in South Brazil, the most cost-efficient & scalable production area

• Total cane crushing capacity of 14 mn tons (7th Largest in Brazil)

o Market capitalization of 1.5 billion US dollars as on 4th Jan, 2011

Brazil

India

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Cyclical Nature of Indian Sugar Industry

Decline in sugar prices

Lower Profitability

High Sugarcane arrears

Decline in area under cultivation

Lower sugarcane production

Lower Sugar Production

Improved Profitability

Low sugarcane arrears

High Sugarcane Production

High Sugar Production

1 - 2 years

2 - 3 years

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Key Businesses

India-based, Asian refining

Indian integrated Cane Processing

Brazil plantation and Integrated processing

o India importing sugar : Import raw sugar, sell refined sugar locally

o India exporting sugar : Refine local raw sugar, sell internationally

o Tolling operation : Import & re-export to capture white premium

Ethanol

Sugar

Power

Ethanol

Sugar

Power

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SRSL Production Capacities - India

2010

Cane Crushing 35,000 (tcd)7.1 mn tons/yr

Power 173MW (95 MW Surplus)

Sugar Refining 6,000 TPD

Ethanol930 KLPD

2011


Power 280MW (158MW Surplus)

Sugar Refining 9,000 TPD

Ethanol1,200 KLPD

N.B.: tcd = tons crushed per day; klpd = kiloliters per day; tpd = tons per day; MW = Megawatt

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Sugar Refining – Asia Wide Coverage

Middle East

East Africa

Kandla

West Coast South East

Asia

Haldia

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Capacity

Brazil Operations


known as Equipav

Management Team



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Brazil Operations

o Shree Renuka is the second largest buyer of raw sugar world-wide since 2009 and buys 100% of its requirements from Brazil

o Shree Renuka has acquired two companies in Brazil • Vale do Ivai is a wholly owned

subsidiary of SRSL

• SRSL owns 50.34% of the Renuka do Brasil S/A

• Combined crushing capacity of 14 mn tons (under expansion to 15.5 mn mt)

o Total inward investment in Brazil so far is USD 350 mn

Mechanical Harvester

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SRSL Production Capacities - Brazil

2010

2012


Power 221 MW (139 MW Surplus)

Raw Sugar4,315 TPD863,000 tons/yr

Ethanol5, 310 KLPD1,062 mn litres/yr


Power 313 MW (215 MW Surplus)

Raw Sugar

5,750 TPD1,150,000 tons/yr

Ethanol6,910 KLPD1,382 mn litres/yr

N.B.: tcd = tons crushed per day; klpd = kiloliters per day; tpd = tons per day; MW = Megawatt

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Synergy of Brazil Investment With Asia

Centrifugal machine

o Asian demand • India, South Asia and the

Middle East emerging as the largest sugar import markets in the world with increasing challenges of land and water availability

o Efficient farming and manufacturing in Brazil• Sugar/ ethanol sector in Brazil

has low operating cost, high scalability and highly conducive climatic conditions

• Ability to cultivate significant portion of cane supply allows capture of value of the agricultural part of the business

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Vale do Ivai

Aerial View of Sao Pedro do Ivai

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About Vale do Ivaí

o Vale do Ivaí has two mills in the state of Parana, Brazil with surrounding cane plantations

o Currently the company has an installed crushing capacity of 3.1 mn tons in two mills: São Pedro do Ivaí (PR) & Cambuí (PR)

o The average distance between VDI processing plants and sugarcane farms is around 14 km, a decided logistics advantage

o Vale do Ivaí is located close to ethanol distributors and the Port of Paranagua (551 km)

o Vale do Ivaí owns equity in four logistics organizations that contribute to make it very competitive for export logistics

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Renuka do Brasil S/A

Aerial view of Equipav Mill

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About Renuka do Brasil S/A

o Shree Renuka Sugars Ltd has acquired a controlling equity stake of 50.34% in Renuka do Brasil S/A for an investment of R$ 450 mn (USD 250 mn)

o Renuka do Brasil S/A is one of the largest sugar/ethanol companies in Sao Paulo state in Southeast Brazil with two very large and modern mills with integrated cogeneration capacity

o Combined cane crushing capacity of 10.5 mn tons of cane per annum (44,400 tcd) & a co-generation capacity of 203 MW

o The mills will be expanded to a combined capacity of 12.0 mn tons (56,600 tcd) per annum and 295 MW with a capital expenditure of R$ 218 mn

o Name of the Biopav mill has been changed to Revati

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Crushing Capacity ranking in Brazil

Cosan 60

ETH + Brenco 37

Louis Dreyfus 36

Guarani 21

Usaacusar 17

Bunge 16

Renuka (post expansion) 15.5

Renuka (Current) 14

Lincoln Junqueira 13

Sao Martinho 13

Coruripe 13

Crushing Capacity (mmt) – 2009-10

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23 other companies

with crushing capacity of 12 mmt to 4 mmt

Source: Itau BBA

Shree Renuka Sugars is the seventh largest by crushing capacity in Brazil

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Capacity

Brazil Operations


known as Equipav

Management Team



Management Team

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Mrs. Vidya Murkumbi, Co-Founder & Chairperson

o Eminent Industrialist from Karnataka & Past President of the South India Sugar Mills Association

o Member of Tuteja Committee set up by the Govt. of India in 2004 for revitalization of sugar industry

o Receipent of Karnataka Ratna AwardMr. Narendra Murkumbi, Co-Founder & Managing Director

o MBA from Indian Institute of Management - Ahmedabad (1994)

o Former Independent board member of ICICI Bank Limited, India’s largest private bank

o Recipient of Economic Times: Entrepreneur of the Year Award in 2010

Mr. Nandan Yalgi, Commercial and HR Director

o Over 11 years of experience in Sugar Industry

o Handles company’s Commercial , HR and management centre

Mr. S.R. Nerlikar , Executive Director Cane

o Over 28 years of experience in Cane Department in Sugar Industry

Management Team

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Mrs. Krishna Kumar Kumbhat, Chief Financial Officer

o Possesses 28 years of experience in Corporate Finance, Accounting, Forex Management and Taxation

Mr. Gautam Watve, Head, Strategy and Planning

o Possesses 11 years of Industry experience

o Worked in the Strategy and Planning functions with Tata Group in India and four years in US

Mr. Vijendra Singh, President

o Possesses 30 years of experience in the Sugar Industry

Mr. Abhay Despande, CEO, KBK Chem Engineering Pvt. Ltd.

o Extensively experienced in the engineering and ethanol sector with Alfa-Laval and Shree Renuka Sugars Limited

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Capacity

Brazil Operations


known as Equipav

Management Team



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Financial Results

FY 06 FY 07 FY 08 FY 09 FY 10* 0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

EBITDA PAT Total Revenues

Note: Financial Year: Oct-Sept * Unaudited Financial Results

CAGR

REVENUES : 63%

EBIDTA : 71%

PAT : 55%

Total Revenues for

FY10 isRs. 78,639

mn

(Rs. in mn)

THANK YOU

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Shree Renuka Sugars Ltd

Corporate Office

7th Floor, Devchand House

Shiv Sagar Estate, Dr. Annie Besant Road,

Worli, Mumbai-400 018.

Tel: +91-22-2497 7744 / 4001 1400

Fax: +91-22-2497 7747

www.renukasugars.com

shree renuka sugars ltd corporate presentation jbims

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