Analysis of Shree Renuka Sugars

Table of Contents

1 INTRODUCTION 4

1.1 VISION STATEMENT 4

1.2 CORE ACTIVITIES 4

1.3 PRODUCTS 4

2 EXTERNAL ANALYSIS 5

2.1 INDUSTRY ANALYSIS 5

2.2 INDUSTRY STRUCTURE ANALYSIS – PORTER’S FRAMEWORK 5

2.2.1 Inter-firm Rivalry 5

2.2.2 Threat of Subsitutes 6

2.2.3 Barriers to Entry 6

2.2.4 Bargaining Power of Suppliers 6

2.2.5 Bargaining Power of Buyers 6

2.3 UNIQUE FEATURES OF SUGAR INDUSTRY 6

2.3.1 Bio-Fuel Production 6

2.3.2 Co-generation 7

3 INTERNAL ANALYSIS 7

3.1 SWOT ANALYSIS 7

3.2 VALUE CHAIN ANALYSIS 8

3.3 FINANCIAL ANALYSIS 9

4 BUSINESS LEVEL STRATEGY 10

4.1 THE PARTS FRAMEWORK 10

4.1.1 Players 10

4.1.2 Rule 11

4.1.3 Tactics 12

4.1.4 Scope 12

5 Operational level Strategy 12

5.1 Product Development 12

5.2 Demand Management 12

5.3 Order Fulfillment 13

6 CORPORATE LEVEL STRATEGY 13

6.1 KEY STRATEGIC QUESTIONS 13

6.2 Fully Integrated Player 13

6.3 Sales Focus on Corporate & Industrial Customers 14

6.4 Focus on Acquisitions as a Growth Strategy 14

7 APPENDIX-I SUGAR FACTORY PROCESS 15

8 APPENDIX-II-SUGAR MANUFACTURING FLOW CHART 17

9 APPENDIX-III: HISTORY: MILESTONES AND STRATEGIC IMPORTANCE 18

INTRODUCTION

Shree Renuka Sugars Limited (SRSL) was born out of a clear vision to emerge as the most efficient sugar processor and the largest marketer of sugar and ethanol in India. The company was founded by Narendra Murkumbi and Vidya Murkumbi in 1998. Their dynamism has provided tangible and exciting results – over the last decade, it has led to the establishment of SRSL as one of the largest and fastest growing sugar companies in India.

The company has India’s largest sugar refining capacity in India (4000 TPD) across 2 integrated refineries (1000 TPD each at Munoli and Athani) and a port-based refinery in Haldia. The acquisition of a majority stake in KBK Chemical Engineering Pvt. Ltd. facilitates turnkey distillery, ethanol and bio-fuel plant...