We can because we think we can

1
 ADDRESSES
Registered Office
Dwarikesh Sugar Industries Limited
Dwarikesh Nagar – 246 762
District – Bijnor,
Uttar Pradesh

Corporate Office
Dwarikesh Sugar Industries Limited
511, Maker Chamber V,
Nariman Point,
Mumbai – 400 021
 ABBREVIATION
ABBREVIATION
Factory units:

DN – Dwarikesh Nagar , Tehsil – Nagina,

District- Bijnor, Uttar Pradesh, India
DP - Dwarikesh Puram, Tehsil – Dhampur,
District- Bijnor , Uttar Pradesh, India
DD - Dwarikesh Dham, Tehsil- Faridpur,
District – Bareilly, Uttar Pradesh,
India.
 METRICS OF PLANT CAPACITY
Division DN DP DD Total
(Plant capacity)

Sugar 6,500 7,500 7,500 21,500

(TCD) (under
implementation)

Co gen 17 33 36 86
(Mw) (24 mw under (under
implementation) implementation)

Supply to State Grid 8 24 24 56

(Mw)

Distillery 30 - - 30
(KLPD)
 Important info
Date of incorporation 1st November 1993

Web site address www.dwarikesh.com

Status Public Limited Company

Listed on NSE, BSE, Luxembourg

Stock Exchange
 ASSOCIATES
1. Morarka Finance Limited - Pursuing investment activities.

2. Dwarikesh Trading Company Limited - engaged in

the business of trading & investments in shares and stocks

3. Dwarikesh Samvad Limited - engaged in the business of

media and software development. It is successfully running a
news based portal in the name of ‘PRABHASAKSHI’. The portal is
one of the most viewed and most popular Hindi portal attracting
nearly 500,000 hits everyday.
STATUTORY AUDITORS, BANKERS & SOLICITORS
Statutory Auditors
S S Kothari Mehta & Company
Chartered Accountants,
146-149, Tribhuvan Complex,
Ishwar Nagar , Mathura Road, N Delhi – 65

Bankers
Punjab National Bank
Industrial Development Bank of India

Solicitors
Mulla & Mulla & Craigie Blunt & Caroe
Kanga & Co.
 BOARD ROOM

• Mr. G R Morarka (CMD)- Key Promoter

• Mr. Suresh Neotia Chairman- Gujarat Ambuja Cements Ltd
• Mr. S S Vaidya Partner, Kanga & Company, solicitors
• Mr. M G Diwan Ex chairman – LIC of India
• Mr. K P Medhekar Ex DGP , Maharasthra
• Mr. Milind J Vichare IDBI Nominee
• Mr. L.N.Heda Management Expert
• Mr. B K Agrawal Ex Secretary (industry), Maharasthra
• Mr.Ravindra Gupta IREDA Nominee
 MEN AT THE HELM

• Mr. B J Maheshwari Vice President (Taxation) & C S

• Mr. Vijay S Banka Chief Financial Officer
• Mr. M.N.Agrawal Chief General Manager
(works)-DN
• Mr. R.K.Goel Chief General Manager (works) –
DP
• Mr. N S Shekhawat Chief General Manager (Cane)
• Mr. K P Gadia Chief General Manager
(Commercial)
• Mr. R L Sahu Addl. General Manager (Cane)
• Mr. Narpat Singh Addl. General Manager (Cane)
 INCREASE IN PLANT CAPACITY (A CHRONOLOGY)

Year Sugar (TCD) Export power (Mw) Distillery (KLPD)

1995-96 to 1996-97 2,500

1997-98 3,500

1998-99 to 1999-00 4,000

2000-01 to 2001-02 5,000

2002-03 to 2003-04 6,500 2

2004-05 6,500 8 30

2005-06 to 06-07 14,000 8 30

2007-08 21,500 56 30
 INFRASTRUCTURE – SUGAR PLANT

Particulars DN DP DD
Total Land 86 58 72
Availability
(Acres)
Command Area of 24,304 23,374 25,054
Cane (Hect.)
Total Sugar Storage 7.5 5 6
Capacity (Lacs
Quintal)
Total Molasses 1.60 1.00 2.00
storage Capacity
(Lacs Quintal)
 INFRASTRUCTURE – DISTILLERY PLANT

Total Molasses Storage 58,143 Quintals

Capacity

Total Rectified Spirit 11,15,150 Bulk

Storage Capacity Liters

Total Ethanol Storage 11,15,150 Bulk

Capacity Liters
 FINANCIAL RESULTS (YEAR ENDED 30TH SEPTEMBER)
Year Ended Gross PAT (Rs. In Operating Book EPS (Rs.) Net Worth
on Income (Rs Million) Profit (PBDIT) Value per (Rs in
in Million) (Rs. In share Million)
Million) (Rs.)

1996 468 4.47 96.90 25.50 0.50 227.50

1997 663 22.54 158.20 26.93 2.52 240.23
1998 876 82.06 212.30 34.32 9.05 306.12
1999 985 72.90 203.40 40.58 7.90 361.87
2000 1059 95.70 226.50 49.28 10.55 439.58
2001 1028 23.33 163.90 46.03 2.63 347.97
2002 1161 10.21 138.50 45.94 0.41 347.30
2003 1178 20.59 153.40 40.80 1.75 347.30
2004 1302 97.61 225.80 50.10 12.13 378.77
2005 1679 266.00 466.70 70.24 23.17 893.59
2006 2401 208.44 456.20 97.89 13.90 1534.58
TRACK RECORD OF EQUITY DIVIDEND PAYMENT

Year Dividend %
1996-97 10%
1997-98 15%
1998-99 15%
1999-00 15%
2000-01 15%
2001-02 5%
2002-03 5%
2003-04 20%
2004-05 60%
2005-06 60%
2006-07 --
 Growth Trajectory - Cane Crushed
200

180 172.72

160
Lacs quintls

140

120 105.99
100 86.48
80.15
74.98 75.19
80 64.75 66.35 65.75
57.33
60 46.99
38.48
40

20
95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07
Ye ar
 Growth Trajectory - Sugar Production

19 1 7 .8 1
17
15
13 1 0 .7 3
Lacs Quintls

11 8 .8 1
9 7 .6 5 7 .8 1 8 .4
5 .8 9 6 .2 2 6 .5 6 6 .7 8
7 4 .8 2
5 3 .8 2
3
9 5 - 9 69 6 - 9 79 7 - 9 89 8 - 9 99 9 - 0 00 0 - 0 10 1 - 0 20 2 - 0 30 3 - 0 40 4 - 0 50 5 - 0 60 6 - 0 7

Ye a r
 Recovery

1 0 .7 5
1 0 .4 8
1 0 .5 0 1 0 .3 2 1 0 .3 9
1 0 .2 6 1 0 .2 8 1 0 .3 1
1 0 .2 1 1 0 .2 0
1 0 .2 5 1 0 .1 2
9 .9 5 9 .9 0
1 0 .0 0
recovery %

9 .7 5 9 .6 1
9 .5 0
9 .2 5
9 .0 0
9 5 - 9 69 6 - 9 79 7 - 9 89 8 - 9 99 9 - 0 00 0 - 0 10 1 - 0 20 2 - 0 30 3 - 0 40 4 - 0 50 5 - 0 60 6 - 0 7
Ye a r
 SHARE CAPITAL – STRUCTURE

 Till April 2001 89.20 Lacs Equity share of Rs 10 each. Total share capital
Rs 8.92 crores.

 April 2001 Issued bonus share in the ratio of 13:100. Share capital of the
company increased to Rs 10.08 Crores

 August 2001 Buy back of 25.20 Lacs shares @ Rs 40/- per share. Total share
capital reduced to Rs 7.56 crores

 Nov. 2004 IPO of 50 Lacs equity shares @ Rs 65/- per share including Rs 55/-
share towards share premium. Total share capital increased to Rs
12.56 crores.

 Dec. 05 GDR issue of 30 Lacs equity share @ US$4 per share. Total share
capital increased to Rs 15.56 crores

 July 07 15 Lacs share warrants convertible into equal number of equity

shares were allotted to promoters. These warrants are convertible into
equity shares at the option of warrants holder at any time after 31st Jan
2008 but before the expiry of 18 months from the date of allotment.
 SHARE HOLDING PATTERN
(as on 31st December, 2007)
Category Total no. of %
shares hold

Promoters and Promoters Group 69,92,099 44.92%

Public Shareholding 85,72,577 55.08%

 SWOT ANALYSIS

• Strengths

 Most Modern Plants with adequate provision for expansion

 Well planned infrastructure
 Abundant and assured supply of sugarcane
 Power supply to state grid
 Sugar Business virtually de-risked with forays in power and
ethanol
 Lowest process losses.
 Highly skilled and motivated work force
 Self reliant in respect of its requirement of power and
water.
 SWOT ANALYSIS CONTD…

• Weakness

 Industry cyclic in nature and highly regulated

by Governmental Controls

 Virtually no control over raw material price

 Lackadaisical attitude of Government in

providing infrastructure such as roads etc.
 SWOT ANALYSIS CONTD…
• Opportunity
 Possibility of increasing capacity
 Opportunity to get into value added business
 Opportunity to set up a bagasse based paper
plant

• Threats
 Import of Sugar
 Frequent changes in Government Policies
All the threats are surmountable
 RAW MATERIAL PRICE – A MAJOR COST DRIVER
Season SMP (Rs per qtl) SAP (Rs per Qtl)
1998-99 52.70 80.00
1999-00 56.10 85.00
2000-01 59.50 90.00
2001-02 62.05 95.00
2002-03 69.50 95.00
2003-04 73.00 95.00
2004-05 74.50 107.00
2005-06 79.50 115.00
2006-07 80.25 125.00 (under review
by court)
2007-08 81.18 110 (Interim court
order)
 OPERATING RATIOS
Particulars 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Manufacturing & 67.93% 71.13% 73.23% 62.28% 58.49% 67.02%

Operating expenses / Total
Income

Excise duty / Total Income 6.68% 8.12% 6.29% 7.70% 5.58% 5.64%

Staff Expenses / Total 5.14% 4.89% 4.89% 4.82% 4.79% 5.02%

Income

Selling & Administration 4.30% 3.93% 2.57% 3.05% 3.22% 3.19%

expenses / Total Income

PBIDT / Total Income 15.94% 11.93% 13.02% 17.34% 27.80% 19.00%

PBIT / Total Income 12.37% 8.22% 9.38% 13.80% 24.52% 13.91%

PBT / Total Income 2.47% 0.81% 3.23% 8.40% 20.98% 11.21%

PAT/ Total Income 2.27% 0.88% 1.75% 7.49% 15.84% 8.68%

 SUGAR INDUSTRY - OUTLOOK
 Indian sugar industry is subject to cyclic forces

 Typical cycle – Two goods years followed by tow bad years and then an
average year

 Cycle repeated once in every five years

 The year 2006-07, for sugar industry was defining year for all the wrong
reasons.

 The Sugarcane production and consequently sugar production was all

time high.

 The sugar prices plummeted to low levels.

 Industry was saddled the high inventory and mounting cane arrears.

 Low international prices on account of record production of sugar in

Brazil.
 SUGAR INDUSTRY – OUTLOOK CONTD..
 The year 2007-2008 is expected to be slightly better than the
previous year.

 The gap between supply and demand is expected to become

more pronounced with supply far exceeding the demand.

 The correction is expected in the year 2008-09.

 Oil prices, world over should increase resulting in utilization of

sugarcane in Brazil for production of ethanol.

 Mounting cane arrears would also dissuade farmers from

growing more and more sugarcane.

 Standalone sugar companies will again find the going tough

 OUTLOOK - DWARIKESH
 Dwarikesh has transformed from a single unit company
to a conglomerate with composite manufacturing
facilities. It should therefore break even in the year
2007-08.

 In the year 2008-09 Dwarikesh should witness runaway

growth in bottom line. Having incurred the capital
expenditure to put its assets in place.

 Dwarikesh is now poised to reap the benefits. Where as

the cost side is already reflected in numbers, the
revenue side has just begun to unfold.
 OUTLOOK – DWARIKESH CONTD..
 In the year 2007-08 sugar business may not
contribute to the bottom line.

 Enhanced production of power to be the money

spinner.

 Capacity to generate and supply power to the

state grid increased from 8 Mw to 56 Mw,

 Power generation to partially mitigate risks

associated with sugar business.

 Dwarikesh poised to earn carbon credits.