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October 2012-March 2013Vol. 8, No. 1 Complimentary copy

(For private circulation only)

A q u a r t e r l y n e w s l e t t e r o f S i m b h a o l i S u g a r s L i m i t e d

SIMBHAOLI

SUGARS

Specialty Sugars Potable Liquor Ethanol Power

Chief Executive Officers Message

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V

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V

IE

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The 2012-13 crushing season was a mixed bag for the

industry. It not only witnessed a spate of industry friendly

policies; it also saw many government promises and industrywishes remaining unfulfilled.

The state of Uttar Pradesh announced a whopping increase in

SAP by ` 40 per quintal, which catapulted cane prices to the

range of`280-290 per quintal, and impacted cost of production

by`5 per kg.

The sugar prices, however, remained subdued on account

of better production forecasts and continuing imports.

The promised hike in export duty remained elusive; and with

production estimate at 24.8 MT, sugar prices dropped by

`3 per kg since the beginning of the cane season.

The central government, in an announcement made in April2013, took the long overdue step to unshackle the sugar

industry from the burden of levy sugar. Sugar mills have now

been freed of the obligation to sell a tenth of their produce at a

lower price through the public distribution system. This is a

welcome move, which will benefit both millers and farmers.

Millers will be able to control their interest outgo and improve

cash flows and clear cane arrears, providing much needed relief

to farmers.

Cane-side reforms, however, were postponed and ethanol

pricing policy for 2013-14 was left to state governments to

formulate and implement. Till the time of going to the press, this

policy has not been announced.

While the future of the industry rests on the ability of

organizations to manage costs; improvement in cane yield, sugar

recovery and quality are key for its survival and growth.

Your Companys power expansion project - a joint venture with

Sindicatum Sustainable Resources Group - has kicked off and is

making good progress.

The Kandla refinery, a joint venture project with ED&F Man is

also progressing well.

I am optimistic that the coming months will see government

policies that bring back relief and succour for the sugar industry.

Best wishes,

Dr. G.S.C. Rao

75th Annual General Meeting

The 75th Annual General Meeting of Simbhaoli Sugars Limited washeld at Simbhaoli plant on 25th October, 2012.

Boiler Firing Ceremony

The boiler firing ceremony was held on 17th October, 2012.

Companys Power BusinessesTransferred to Simbhaoli Power Limited

As a part of its business re-

structuring exercise, Simbhaoli

Sugars Limited (SSL) has

transferred its existing power

businesses situated at Simbhaoliand Chilwaria on a slump sale

basis to Simbhaoli Power Limited

(SPL) a Special Purpose Vehicle

set up for this purpose. The transfer took place with effect from

January 26, 2013 at a fair market valuation of`159.9 crore.

Prior to this, SSL entered into a joint venture with Sindicatum

Sustainable Resources Group (Sindicatum), a global developer and

operator of clean energy projects. Sindicatum, through its subsidiary

company Sindicatum Captive Energy Singapore Pte Limited,

Singapore had agreed to acquire 49% of the share capital in SPL.

SPL will implement an expansion plan to enhance its aggregate power

generation capacity from 52 MW to 85 MW and is workingwith banks to finalise lending terms. The expansion will enhance

the earnings of SSL from the power business and improve its

financial health, as a large capital inflow will be received by SSL as well.

For the period ended December 31, 2012

! Consolidated net sales at `2823 mn, higher by 51%

! Standalone net sales at`2562 mn, higher by 54%

! Incurred a loss of`208 mn on account of high cost of production

! Average realization at`348 mn, higher by 13.3%

Highlights of Financial Results

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Vol. 8, No. 1, October2012-March 2013

SIMBHAOLI

SUGARS

Specialty Sugars Potable Liquor Ethanol Power

Hyper-market promotion in Mauritius

Trust specialty products

on display at Jumbo Casino

and Station Phoneix, two

major hyper-markets in

Port Louis, Mauritius.

TRUST PROMOTIONAL ACTIVITIES

32nd India International Trade Fair

Simbhaoli Sugars showcased its Trust range of speciality sugars and

instant fruit drink mix at the 32nd India International Trade Fair at the

Pragati Maidan, Delhi. The event proved to be very useful for

undertaking an extensive brand building and sales promotion drive

including wet sampling, which saw a positive response from a large

cross-section of the Delhi public that visited the fair.

28th Aahar International Food & Hospitality Fair

Trust showcased its range of speciality sugar and instant fruit-drink

mix at the annual 5-day Aahar International Food & Hospitality Fair

held at Pragati Maidan, Delhi. The Trust stall saw huge footfalls,

resulting in good sales, sampling and business enquiries. The event

also helped build awareness amongst a cross-section of the

Delhi public.

Simbhaoli Sugars participated in the month long (January-February)

exhibition at Hyderabad. The objectives were to build awareness and

promote products under the Trust brand umbrella and undertake an

extensive taste sampling exercise for those who had not experienced

our products.The Trust stall displayed the entire range of speciality sugars and

Sipp instant fruit drink mix. The stall attracted huge crowds; and

generated very good sales of all the products.

Numaish Exhibition, Hyderabad

Extra Ordinary Annual General Meeting

The Extra Ordinary General Meeting of Simbhaoli Sugars Limited

was held on 12th March, 2013 at the Simbhaoli plant.

Kandla Sugar Refinery Update

Work on the Uniworld Greenfield refinery at Kandla is proceeding asper schedule. Trial runs are expected to take place in the first week of

July, 2013; and commercial production is slated to commence in

September, 2013.

Trust products are now available at the followingonline stores; and delivered within 3 hours!

www.eramukaka.com

www.ykartt.comwww.zopnow.com

www.freshoaks.com

Bangalore

www.call2us.com

Amritsar

www.tolbazaar.com

Gurgaon

www.cartwings.comNCR

www.drivemart.comChandigarh Region

www.gopeppers.comGhaziabad & Noida

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SIMBHAOLI

SUGARS

Specialty Sugars Potable Liquor Ethanol Power

Vol. 8, No. 1, October2012-March 2013

PRAVDA PROMOTIONAL ACTIVITY

FCC Club of South Asia

Hotel Plazo Sec-29, Gurgaon DLF Club, Gurgaon

ATS Hotel, Gurgaon Pullman Hotel Restro & Bar, Gurgaon

Big Bazar gift voucher coupons for sales men

! Conducted blind testing and

free sampling at Hotel Aman,

Gurgaon.! Distributed free miniature

b o t t l e s a t F o r e i g n

Correspondents Club of South

Asia, Delhi.

! Branding activity at Hotel Plazo, Gurgaon during the run up to

Christmas and New Year Eve celebrations.

! Big Bazaar gift voucher coupon scheme for our retail

sales staff.

I N T E G R A T E D C A S E T E C H N E W S! Awarded operation and maintenance contract for

one of the largest business houses in Myanmar.

! Awarded an advisory contract for carrying out

efficiency audit of sugar factories in Vietnam. Our

team visited Vietnam for this assignment.

! Won the contract for rehabilitation and running of a sugar complex

in Zanzibar.

! Awarded contract for KPR Sugar Industries in Karnataka, which

includes stabilization of the manufacturing process, improving the

sugar quality and de-bottlenecking of the plant.

! Senior officials of Thailands largest sugar manufacturing company,

Mitr Phol group, visited our manufacturing facility and had detailed

discussions about technology transfer in the field of sugar refining

and energy conservation.

! Bagged gap analysis study assignment for sugar mills in Maharashtraand Bihar.

! The Indonesian delegation visited Simbhaoli plant and evinced

interest in engaging our consulting services for improving the

efficiency of their factories.

! Assigned to completely overhaul and maintain a sugar plant in

Tanzania.

3 Self-Development Workshops at Simbhaoli

Mr. Arvind Kaul organized three workshops (15-16 February, 7-8

March and 13 March) for 100 non-executives of the Simbhaoli

distillery. Mr. Indeep Singh Bhatia (Sr. VP SSD), Mr. R.K Singh (CGM,

SDD), Mr. Rooprajinder Singh (Manager CHR, SSD) and Major D.S

Chahal (Manager P&A) also participated in the workshop.

The theme of both the workshops was Dos and Donts for Self-

Development in the Changing Business Environment.

The participants deliberated upon an array of ideas for achieving that

goal, using the brainstorming method.

Light-My-Fire Workshops at ChilwariaMr. Arvind Kaul facilitated a series

of Light-My-Fire workshops forC h i l w a r i a e x e c u t i v e s i n

S e p t e m b e r , O c t o b e r a n d

November of last year. Mr. I. S.

Bhatia and Mr. Rooprajinder Singh

were present on all the occasions. The aim of these workshops was

to help executives introspect as individuals and team players. The

dea being that they identify and reinforce their core strengths; and at

the same time, evolve strategies to overcome their weaknesses.

See the Trust page

on Facebook.

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Vol. 8, No. 1, October 2012-March 2013

Please mail your suggestions to harmeet@simbhaolisugars.com

Harmeet Kaur, Gursimran Kaur, K.K. Tyagi

Editorial & Design : spawncommunications@gmail.com

Editorial Team :

3rd Floor, E-13/29, Harsha Bhawan, Middle Circle, Connaught PlaceNew Delhi 110001 India Tel: +91-11-43214100

E-mail: info@simbhaolisugars.com Website: www.simbhaolisugars.com

SIMBHAOLI

SUGARS

Indias largest integrated sugar refinerySimbhaoli Brijnathpur Chilwaria

A FSSC 22000:2011, ISO 9001:2008 & ISO 14001:2004 Certified Company

REPUBLIC DAY CELEBRATIONSSimbhaoli

Chilwaria

Republic Day was celebrated withenthusiasm at all the three plants.Mr. I.S. Bhatia and Mr. B.B. Pathakhoisted the national flag at specialfunctions held at Simbhaoli andChilwaria respectively.

VISITORS

Station, Muzaffarnagar supervised the second meet, which discussedspring planting and new techniques of sugarcane cultivation.

C A N E D E V E L O P M E N T N E W SIn the January-Marchquarter, two farmersmeets were organized at

Simbhaoli plant. The firstmeet discussed ways topromote CO-0238, aspecial cane variety so thatproduction and recoverycould be maximized. Dr.Arun Kr. Singh, Scientist,S u g a r c a n e R e s e a r c h

SIMBHAOLI INDIA FOUNDATIONSimbhaoli India Foundation, in association with Dev

Nandini Hospital, Hapur, organized a blood donation camp

on 23rd February at Brijnathpur. 58 people participated in the camp.

A delegation from PTPN X1, theIndonesian Sugar Company visited oursugar complex at Simbhaoli.

A team from Competitive CapabilitiesInternational, Singapore visited Simbhaoliplant to study our systems and processes.

Holi Celebrations at Simbhaoli

Other Functions at Simbhaoli

Christmas Celebrations at Simbhaoli.

A special function was organized for thekids, teachers and parents at theKindergarten School, Simbhaoli plant onMarch 13.

Senior officials from two Iranian companies - Sugarcane

Development and Byproduct Commercial - visited the

Simbhaoli plant. The delegation was led by Mr. Ezatollah Razee,

managing director.