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SUGARL I N K S
ISRMAX India 201213-15 December 2012
IARI Ground, PUSA, New Delhi
ISRMAX Asia 201229-31 August 2012Hall 8, Impact Exhibition & Convention CentreBangkok (Thailand)
Shrijee Process Engineering Works Ltd. (India)
Cover Story
Launching of Sugar Links Magazine
ARTICLE
NEW APPOINTMENT New Appointment atSaisidha Sugar Equipment & Eng. Co. Pvt. Ltd
PRESS RELEASEBevcon Wayors ties up with FMK Poland to offer Revolutionary Special Conveying Products to the Core Industries in India
NEWS Sugar production to fall 9.8% in FY13: CMIE
BUYERS GUIDESugar & by-products Processing Machinery Manufacturer
Co
mp
lim
en
tary
Co
py
Benchmarking Concept For Sugar Complex
FOR HEALTHYENVIROMENT
ENVIROPOL ENGINEERS PVT. LTD.
www.enviropolengineers.in
Our Divisions
›› Environment ›› Wet Scrubbers ›› Wet Electrostatic Precipitator ›› Dry Electrostatic Precipitator ›› Bag Filters ›› Mechanical Dust Collectors ›› Fume Extraction & Cleaning System ›› Mechannical Dust Collectors ›› Fumes Extraction & De-dusting Systems
Energy
›› Flash Dryer for Bagasse ›› Boilers & Accessories ›› Co-genration Power Projects
Material Handling
›› Slurry De-Watering Systems ›› High speed bagging system ›› Fuel/Ash Handling System ›› Pneumatic Conveying System
Flash Dryer for Bagasse
For Energ y E f f i cent Prolonged Co-generation
B a g a s s e a n d i s t s conservation has become a necessity for up coming sugar factories moving towards co-generation. Enviropol-Flash Sryers for Bagasse maximizes the generation of heat energy from the available system t h rough s ub s t a n t i a l reduction in moisture content.
Our Manufacturing Range
Fluidized bed nye Tray
High Energy Venturi
Multi Jet Spray Tower
Fixed Vane Mixer
Packed Bed Tower
Wet Cyclones
WET SCRUBBERS
A-50, Sector-65, Indl. Area, Phase III, Noida-201307, U.P IndiaTel: +91-120-2403441, Telfex: +91-120-2403442
Email: [email protected], [email protected]
14150 n ll on ac os .. C u r I sta ati s r s. .. o nt ies
d e a furt rAn xp nding he .....
02
Vishal Gupta Editor
Edit
oria
l CONTENTS
India holds a very sweet position in the Global Sugar Industry with the top slot for
sugar consumption and the second in sugar production after Brazil. India produces
34,818,700 tons of sugar annually.
Cultivation of sugarcane is the main source of sugar production in India and it is
called cane sugar. 70% of sugar is produced from sugarcane and the remaining 30%
of sugar comes from sugar beet.
The Indian sugar industry so far, has successfully met the domestic demand despite
the highest sugar consumption and not a single grain has been imported during the
last few years. On the contrary India seems to become a lucrative export hub for
sugar in future.
The trade figures of India correspond to the mark of 1.5 million tons. The climate
and soil condition in some parts of India are favourable for sugar cane cultivation.
The sugar production up to 31st March, 2012, is 232 lakh tons. This is about 27.5 lakh
tons higher than the production of 204.5 lakh tons last year, indicating an increase of
13% over last year. Uttar Pradesh has already produced 66.35 lakh tons up to the
end of March 2012, U.P. alone accounts for 24% of the overall sugar production and
Maharashtra's contribution can be totalled to 20%.
There are about 599 sugar mills all over India. Maharashtra itself accounts for 194
factories. The sugar industry has a brighter side in respect of its by-products e.g. Co-
generation. The principal by-products are molasses which are utilized in the
production of bio-fuel, ethanol and other products in distilleries used for other
commercial purposes.
The recent problem of conversion of food/feed grain into bio-fuel ethanol
particularly from corn-soya has thrown the price of the feed/food grains to sky
high.
Pixie Consulting Solutions LTD. (PCSL) is a trade news publication house
unanimously publishing 23 trade specified journals aiming to various segments of
agriculture industry. Our goal is to cater top 2000 companies in India & Abroad &
facilitate them with best of the trade information via our Trade shows & Magazines.
We welcome all for their views & ideas towards the path of success and Prosperity.
Advertisement Office :
923, Sector-9, Urban Estate, Karnal 132 001 (Haryana)Mob.: + 91 9991705002, 9812082121 Fax : + 91 (184) 2231050E-mail: Website :[email protected] | www.pixie.co.inVishal Gupta
Chairman & Editor in Chief
Vinod Kumar
General Manager
Jawahar Khurana
Marketing
@pixie.co.in
Dr. S.S. Mondal
M.V.Sc. & A.H., Ph.D.
Manoj Singla
Co-Editor
Ashwani Verma
Graphic Designer
Manager
marketing
Our Team
Editorial & Advertisements may not be reproduced without the written consent of the publishers. Whilst every care is taken to ensure the accuracy of the contents of sugar links the publishers do not accept any responsibility or liability for the material herein.
Publication of news, views and information is in the interest of positive sugar industrial development in India. It does not imply publisher’s endorsement.Unpublished material of industrial interest, not submitted elsewhere, is invited. The submitted material will not be returned.
Editorial Policy is independent. Views expressed by authors are not necessarily those held by the editors.
Editor-in-chief - Mr. Vishal Gupta
All legal matters are subject to karnal jurisdiction.
Publisher, Printer - Mr. Vishal Gupta on behalf of Pixie Consulting Solutions Ltd.Printed at: PRNT Source Glazers Pvt. Ltd., New Delhi Published at: 923, Sector-9, Urban Estate Karnal 132001 (Haryana)
India's Remarkable Global
Position in Sugar Industry
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10,1721,23
11-19
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24
Getting rid of unnecessary by- products in the sugar industry
Anton Paar expands its product portfolio
Bevcon Wayors ties up with FMK Poland to offer Revolutionary Special Conveying Products to the Core Industries in India
E-interview with Mr. Rajesh Verma, Director, ENVIROPOL Engineers Pvt. Ltd.
Benchmarking Concept For Sugar Complex
Techrevo Engineers Serving the Industry in different ways with their quality products
Launching of Sugar Links Magazine
A Novel Innovation by IMCO
Shrijee Process Engineering Works Ltd. (India)
Sugar prices may rise to Rs 31/kg in few months: Balrampur
Announcement from BASF, Arsenal and Foosung
News
Product Launch
Buyers Guide
Sugar Mania
Enviropol Engineers Pvt. Ltd. 2
Avant-Garde Engg. &
Consultants (P) Ltd. 5
J P Mukherji & Associates (P) Ltd. 9
Shree Krishna Mfrs. Co. 20
Shrijee Group 25
Food & Biotech Engg.(I) Pvt. Ltd. 27
ISRMAX Asia 2012 28
Case I
The raw juice for sugar production is made from sugar beet or sugar cane.
After the extraction the raw juice still contains various organic and
inorganic components that would interfere with the subsequent
production steps. These non-sugar substances have to be removed from
the thin juice.
D u r i n g t h e
calcinations of lime
stone in lime kilns
chalk and carbon
dioxide is extracted.
The chalk is added in
the form of lime milk
s o t h a t f l o a t i n g
s e d i m e n t i s
coagulated and the
undesired non-sugar
s u b s t a n c e s a r e
bound.
For 9 years, a sugar producer has been using a Börger rotary pump CL
390 for the conveying of lime milk. The sugar producer is mainly
impressed by the reliability and the long service life of the Börger pump.
Case II
A producer of alcohols extracts ethanol and methanol from molasses (by-
product of sugar
production).
The molasses is
stored in storage
t a n k s . T h e
company requires
a new pump to
c o n v e y t h e
required quantity
f o r d a i l y
production from
the storage tank to
a production tank
(so-called D tank).
The pumps should be able to convey viscous media, it should be easy to
service and resistant to pressure. Furthermore a solution for controlling
of overpressure was requested. They had bad experience with the
initially installed overpressure valve. The sugary medium clogs the
opening of the valve and hardens.
The producer of potable alcohol settled for a Börger rotary pump CL 260
with a BörgerVariocap as overpressure protection.
The force resulting from the pressure head of the pump affects the
Variocap. As long as the spring force is larger than the pressure force, the
plate remains in position thus sealing the conveying chamber. If the
pressure exceeds the set spring force, the plate shifts in an axial direction
thus permitting the conveying medium to flow back.
Boerger Pumps Asia Pte. Ltd.
German Centre,office#21
14th, Floor,Building no. 9, Tower B
DLF Cybrer City Phase III
Gurgaon 122002 Haryana , India
Land line: 0124-4636060, Fax: 0124-4636063
www.boerger.com
Getting rid of unnecessary by-products in the sugar industry
Acquisition of the Petrotest Group
As of March 1, 2012, Anton Paar world leader in
providing high-precision measuring instruments in
the f ie ld of densi ty and concentrat ion
measurement, determination of dissolved CO2,
rheology and material characterization of surfaces
has acquired the Petrotest Group.
Petrotest and Anton Paar signed the purchase
contract on February 28.
Petrotest will now be called “Petrotest GmbH, a
company of Anton Paar” and continue operations
at its headquarters in Dahlewitz, near Berlin. An
expansion of the premises is planned. The
acquisition of the Petrotest Group represents the
largest purchase in the history of Anton Paar. In
1996 Anton Paar acquired PhysicaMesstechnik
GmbH in Stuttgart. This is now managed as Anton
Paar Germany GmbH, a 100 % subsidiary. In 2006
Anton Paar purchased the
Graz-based company MSB Morocutti GmbH,
which is now integrated into the Anton Paar Group
as Anton PaarShapeTec GmbH. 2007 saw the
acquisition of Dr. Wolfgang Kernchen GmbH in
Seelze-Letter, Germany, which is now Anton
PaarOptoTec GmbH.
The new 100 % subsidiary, the seventeenth in the
Anton Paar Group, will be managed by Florian
Wierzbicki, the former commercial manager of
Petrotest, and Heinz Kindlhofer, Business Development Manager at
Anton Paar.
Petrotest is a family company with a long tradition. It was established in
1873 by Berthold Pensky. The company became well-known for
producing equipment for determining the flash point of petroleum
products using the Pensky-Martens method. Customers are renowned
and globally active refineries, manufacturers of biofuel, vehicles and
bitumen, companies in the chemical industry, beverage industry and
food industry, among others. For the last 33 years Petrotest has been
successfully managed by VolkmarWierzbicki.
Dr. Friedrich Santner, CEO of Anton Paar GmbH: “Petrotest's products
are anideal complement to Anton Paar's product portfolio. Anton Paar is
the world leader in the field of density and concentration measurement,
the determination of dissolved CO2, rheology and the material
characterization of surfaces. Its customers include the largest soft drink
and beer manufacturers in the world, as well as companies in the food,
chemical and pharmaceutical industries. Established in 1922 as a one-
man locksmith's workshop in Graz, Austria, the company continues to
tread new paths and combine high-precision manufacturing with the
latest research results. Anton Paar is active in more than 110 countries
with sixteen now seventeen subsidiaries. Over 1400 employees in a
worldwide sales and service network support customers on-site and
make sure that Anton Paar'sproducts, support and service live up to their
excellent reputation.
VolkmarWierzbicki, former owner and CEO of Petrotest reports: “I am
pleased that an innovative and also value-led high-tech company such as
Anton Paar, which is known for its excellent company culture, employee
orientation and highly precise and high-quality products, will be the new
owner of Petrotest. It is important to me that the location in Dahlewitz is
secure for the long term. In contrast to international companies with
shareholders, Anton Paar has a sustainable company philosophy.”
Contact: sonja.hiebler[at]anton-paar.com, www.anton-paar.com
Anton Paar expands its product portfolio
Article
04
05
Partnership aimed at providing Stacker Reclaimers, Wagon tipplers
among others to Power, Mining, Mineral and Cement Industries in India
and Abroad ~
Hyderabad, 21st October, 2011 One of India's premier Bulk Material
Handling and Conveying Systems provider Bevcon Wayors Pvt. Ltd and
Financing & Manufacturing & Know-How Ltd (FMK), Poland's premier
design & engineering consultancy, today announced their strategic
partnership to introduce special conveying products that will provide
revolutionary solutions to complex material handling issues of core
industrial sectors.
Following this collaboration, industries from Power, Cement, Mining
and Mineral sector will greatly benefit from the introduction of Stacker-
Reclaimer, Wagon Tippler, Portal Scrapper and Paddle Feeders.
These special conveying products will enable core industries to manage
their bulk materials like coal, iron ore and limestone effectively and
efficiently. For instance, Stacker-Reclaimer can stack and reclaim bulk
materials up to a height of 70 meters, much higher than any other
available conventional conveying system thereby saving space and
capital investment for the industries.
The new relationship between the two pioneering organizations takes
the form of an extensive tie-up whose scope of collaboration will cover
the Design & Engineering, Manufacturing, Quality and Assurance,
Supervision of Erection and Commissioning of the special conveying
products and solutions.
Commenting further on this strategic partnership, Mr. P Suneel
Lakshman, Managing Director, Bevcon Wayors said: “We are proud to
partner with FMK Poland, one of Europe's leading design engineering
organizations in providing state-of-the-art products and solutions for
core industries to manage bulk materials effectively and efficiently.
Having cemented ourselves as India's preferred bulk material handling
and processing solutions provider in our segment, this tie-up is another
step forward in Bevcon Wayors' commitment towards providing cutting
edge engineering, manufacturing and research capabilities to the core
industries across India and abroad. Given the increasing need for
managing bulk materials across sectors, we believe that robust
technology delivery and better brand alliances like ours will lead to
superior customer confidence.”
Speaking on this occasion, Mr. Jan Czechowski, Senior Vice-President,
FMK Poland said, “FMK is committed to become a globally recognized
design, engineering and manufacturing organization in the field of
material handling. In order to expand our footprint
beyond Europe, we have been scouting for partners with similar
capabilities and tenacity for growth. This partnership with Bevcon
Wayors is significant to our growth and gives us the opportunity to
introduce our revolutionary products to Indian market. For varied
material handling needs, FMK will be able to provide a bouquet of
special conveying products, through this partnership. For the core
industry players this is another evolution in ways they handle bulk
materials and to make the most of the buoyant market climate in India”.
FMK, in the process of analyzing the strength and potential available
towards designing, engineering and manufacturing of conveyor
systems, crushers and screens of Bevcon Wayors will extend this
association to buy back Bevcon Wayors components and products for the
ongoing and future projects FMK execute in Poland.
And also as part of the partnership, FMK will train Bevcon Wayors
engineers in designing, up-gradation and support in manufacturing
technologies, standardization of Quality Assurance processes and
systems, erecting and commissioning the special conveying products.
For further media queries, please contact
Shabbir Khan, Mob: 8885564075, [email protected]
Saisidha has been at the forefront in making its presence felt at various
high profile domestic and international Conventions, Seminars, and
Conclaves etc. in India and abroad. Saisidha had its representation at
recently concluded Indo-African conclave at New-Delhi in March
2012.Where a host of African nations were present with large contingents
to interact with their Indian counterparts.
Such platforms and events have a great relevance in opening up
boundaries for business and give a broad perspective of the
opportunities in sugar sector, world-over. Saisidha has widened its
overseas contact base not only for business but has also been looking to
acquire know-how of cutting edge technologies world-wide in pursuit of
excellence in what it offers to the clients.
Saisidha shall also be present at”ISRMAX Asia-Sugar 2012” being held at
Thailand in August 2012 looking to new horizons and openings for
business in South East Asian countries.
Bevcon Wayors ties up with FMK Poland to offer Revolutionary Special Conveying Products to the Core Industries in India
Saisidha Presence in Indo African Conclave
IS AX RMASIA
SR AXI M
A IS A
th st 29 to 31 August 2012Hall 8, Impact Exhibition & Convention,
Centre, BANGKOK (THAILAND)
Asia’s
Biggest SUGAR
Exhibition
+91 9991705002 | [email protected]+91 9991705002 | [email protected]
Press Release
06
E-interview with
Mr. Rajesh Verma
Director,
ENVIROPOL Engineers Pvt. Ltd.
Interview
07
With global presence in 14 countries and
more than 180 installations worldwide in
the past years, what are next projections
from Enviropol?
ENVIROPOL, being technology driven
company, our next projections are to make
“Pollution Control in the Sugar Mills more
effective and Profit making through heat
recovery while scrubbing. Taking forward
this concept, we aim to reach many more
countries.
Where do you see the Indian Sugar Industry
in comparison with the world sugar trade in
terms of technological development?
The Indian Sugar Industry is on a junction
today where i t can avai l enormous
opportunities created by emergence of
sugarcane as a source of Renewable Energy
t h r o u g h e t h a n o l a n d c o g e n e r a t i o n
worldwide.
As an Industry leader you have witnessed
the industry transformation in past decade.
In your opinion what were the key
challenges and the key drivers of prosperity
during this period?
Indian Sugar Industry can be a global leader
provided it comes out of the vicious cycle of
shortage and surplus of sugarcane, lower
yie ld and recovery, ever increasing
production cost and mounting losses, which
have been the key challenges in the past
decade. However, emergence of sugarcane
as a source of renewable energy has been the
key driver for sustainability during the
period.
What milestones you foresee that Indian
Sugar Industry will be achieving by 2020?
With the present scenario, it is difficult to
predict the milestones for 2020. However I
am sure, Indian Sugar Industry has all the
ingredients to become world leader. In the
field of Environment, I feel, milestone for
2020 could be to meet more stringent
emission norms for solid particulates and
gaseous pollutants besides zero water
discharge. At Enviropol, we are already
geared up to face these challenges.
During your journey with Enviropol, what
all feathers you have added to your basket
up till now? What do you learn from both
Success and failure during this time span?
We had a humble beginning and gradually
caught pace. While enjoying a good response
from domestic market, we fetched our first
export order in the year 2006. At this time; I
realized that we need to upgrade ourselves
with respect to certifications, infrastructure
and international standards. Today, have our
own corporate office, world class workshop
with latest manufacturing facilities and
accreditations like ISO 9001, 14001 & 18001
towards Quality, Environment, Health &
Safety and are well equipped to cater
international market.
What has been the response/feedback from
Sugar Industry for the Wet Scrubbers
introduced in India 2003?
Out of 180 installations so far, more than 60%
are repeat orders from the same Customers.
This itself speaks about the response and
satisfied clientele across globe.
What are the strategies you have adopted to
increase your market share in India?
A. Efficient design, Adequate Automation,
User friendly Operation, Prompt services,
Continual improvement, On time Delivery
and Competitive price have been the key
Performance Indicators for a good market
share.
During last couple of years, we have also
diversified our product range by introducing
more innovative technologies such as Wet
Electrostatic Precipitators (WESP) and
Bagasse Dryers to further strengthen our
market.
What are the challenges that you see for
Enviropol in the Sugar Industry in India?
And how do you plan to overcome them?
S p a r i n g a d e q u a t e f u n d s f o r E H S
(Environment, Health and Safety) is indeed a
challenge in the present scenario with Sugar
Industry particularly in India. Going for high
end solut ions requires good capital
investment. Foreseeing this challenge,
Enviropol has already worked out and
promoting an integrated technology for
Emission Control using Bagasse Drying as a
viable option for return on investment.
What is the role of Enviropol in making the
Sugar Complex more environment friendly?
The “Air Pollution Control System” supplied
by Enviropol have so far been able to clean
our environment by over 4 Million Tons of
hazardous fly ash besides 70 Million Tons of
carbon dioxide within last 8 years of
existence. This surely has made its positive
impact on better agricultural growth, health
and safety of human beings living in the
vicinity of Sugar Factories besides creating
employment and usable by-products.
www.enviropolengineers.in
C h a n g i n g m a r k e t o p p o r t u n i t i e s ,
E n v i r o n m e n t a l c o n s i d e r a t i o n s ,
T e c h n o l o g i c a l d e v e l o p m e n t s a n d
increasing demand for energy, necessitate a
cane sugar factory to maximize their overall
efficiency and optimization the production
of a range of products and by-products from
the cane feedstock.
Integration of Sugar Factory (mill) with
bagasse based cogeneration (generation of
electrical power for export to consumers outside the factory) and
distillery (ethanol / extra neutral alcohol plant) enhance the feasibility of
overall Sugar Complex. This is possible due to more favorable prices for
electrical energy (power) & alcohol.
Energy audits, replacement of old technology with new one viz.
replacement of mill turbines with hydraulic drives / electric motors etc.
and implementation of advanced technologies in process house resulted
in drastic reduction in energy requirement of sugar manufacturing
process.
Bagasse, one of the main by-product is normally burnt in boilers to
produce steam and electrical energy, providing energy necessary to
fulfill the process requirements. Use of efficient technologies with lowest
possible steam consumption for the sugar processing coupled with
Cogeneration and Ethanol production, allows production of surplus
bagasse, which is used as a fuel source for electricity generation. Different
cogeneration systems, such as Rankine cycle with condensing steam
turbines, improves the amount of electricity produced from sugarcane
bagasse, thus allowing it sell to the grid.
Previous sugar mills used to operate with steam at low pressure (32 bara
/ 21 bara) and temperature and back pressure steam turbines, resulting
in low energetic efficiency, high bagasse consumption, low bagasse
surplus and a small electricity surplus, or even none. As a consequence,
new projects of sugar cane mills operates with steam at higher levels of
temperature (up to 540 ºC) and pressure (110 / 85 / 64 bara), condensing
steam turbines and the use of all the bagasse generated in the mills as a
fuel to produce electricity, selling the surplus electricity to the grid.
Another bi-product molasses is processed by fermentation of its sugars
to produce Ethanol. Depending upon market demand cane juice, syrup
can also be diverted for production of ethanol. Ethanol blending in
gasoline is mandated in most of countries resulted in better market
prospects for Ethanol. EM
For further information, please contact:
M.S. Sundaram, B.Tech. (Chem), M.I.E., (Chartered Engr.)
Managing Director, J.P. Mukherji & Associates Pvt. Ltd.
[email protected]| www.jpma.co
Benchmarking Concept For
Sugar Complex
M.S. Sundaram
A new study claims the growth in ethanol production over the last 12 years
has reduced wholesale gas prices.
The study from Iowa State University's Center for Agricultural and Rural
Development (CARD) also finds that
ethanol lowered gasoline prices by just
over $1.00 per gallon in 2011. But Marlo
Lewis, senior fellow for the Competitive
Enterprise Institute's (CEI) Center for
Energy and Environment, says the
study does not pass the laugh test.
"Gas prices this year hit an all-time high
at the same time that ethanol production
hit an all-time high, and yet they're
telling us that ethanol is some kind of
great solution to the problem of high gas
prices," he notes. "If this is success, what does failure look like?"
Marlo Lewis (CEI)But getting past the initial reaction, Lewis adds that a closer
look at the study reveals the authors explored how much gasoline would cost
if the motor fuel supply were reduced by ten percent -- the amount that
ethanol makes up in today's motor fuel. The CEI senior fellow says that is
unrealistic.
"They want us to believe that all of these resources, like refining capacity, that
are now dedicated to ethanol production because the law requires it would
simply have been left idle over the last ten years and that the refiners would
not have used that to make gasoline instead of ethanol," he comments.
Lewis adds that there is a market demand for ethanol as an octane booster, so
ethanol would not disappear from the equation altogether.
source: onenewsnow
A new study conducted by university economists shows that Midwestern
drivers saved $1.69 per gallon of fuel last year because of domestic ethanol
production and use.
The Midwest fared the best in the study that was done by Dermot Hayes of
Iowa State University and Ziaodong Du of the University of Wisconsin.
Nationally, consumers saved $1.09 per gallon. The Center for Agricultural
and Rural Development released results of the study recently.
Chad Blindauer, president of the South Dakota Corn Utilization Council, said
most consumers have no idea how much more it would cost to fill up their
vehicles if it weren't for ethanol.
“Having access to American ethanol generates a significant savings for hard-
working families in South Dakota and the rest of country, which typically
goes unnoticed,” said Blindauer, a Mitchell farmer and rancher. “It's
important for consumers and policy makers at all levels to understand just
how much of a positive impact the ethanol industry truly has on our
country.”
The study shows that ethanol reduced the average American household's
spending on gasoline by more than $1,200 in 2011. The $1.09-per-gallon
national impact is up from 89 cents per gallon in 2010, a change the
researchers attribute to increased ethanol production and higher crude-oil
prices as well as a bigger price difference between ethanol and gasoline.
The average price for a barrel of crude oil increased to $95 in 2011, up from $80
in 2010.
The study determined that drivers would have paid an average of about $4.60
per gallon last year without the inclusion of 13 billion gallons of ethanol.
From a South Dakota Corn Growers Association news release
Has ethanol helped lower gas prices?
New study shows ethanol saves Midwest drivers $1.69
Article
08
09
News
10
New Delhi, Promoters of sugar companies are consolidating their
holdings, taking advantage of the current low valuations in a cyclical
industry.
Among the groups that have hiked their stakes are Balrampur Chini
Mills Ltd, Bajaj Hindusthan Ltd, Simbhaoli Sugars Ltd and DCM Shriram
Consolidated Ltd (DSCL).
Highest holding
For the quarter-ended March 2012, DSCL and Oudh Sugar Mills Ltd
reported the highest promoter shareholding of over 61 per cent each.
Being cyclical in nature, the sugar industry had seen valuations hit a low
in the recent quarters.
The sugar stocks had been battered in recent months and scrips of many
companies had hit 52-week lows in the December quarter on poor
performance and weak outlook for the sector. Stocks dumped by
institutional investors and the public are being mopped up at regular
intervals by the promoter and promoter groups.
“We have confidence in the performance of the company and have
gradually increased our promoter stake over the years according to the
norms set by the Government,” said Mr Ajay S. Shriram, Chairman and
S e n i o r
Managing
Direc tor ,
DSCL. The
company
has seen its
promoter
holding go
u p f r o m
57.57 per
c e n t i n
q u a r t e r -
e n d e d
March 2011
to 61.14 per cent in the latest quarter.
“It is not a year-on-year trend, but part of our family philosophy to
consistently increase our stake as a long-term strategy showcasing our
confidence in the company,” Mr Shriram added.
Despite rising output for three consecutive years, many sugar companies
continue to reel under losses as the sector is still heavily controlled by the
Government. The cane arrears or the payment to be made by the
companies to growers continue to rise as the cane pricing is not linked to
the returns on sugar sales.
Long-term prospects
The industry continues to demand decontrol of the sector and the
Government has set up a high-level panel to look into the issue. “The
long-term prospects for sugar are definitely good. The capacity, which
has come up in the past few years, is getting absorbed. Hopefully, with
the new crop, sugar prices may see a correction,” said Mr Kishor
P.Ostwal, CMD, CNI Research.
“The promoters have made good use of the low prices to buy their shares
in the open market and I expect this trend to continue,” Mr Ostwal said.
However, other major sugar producers such as Shree Renuka Sugars Ltd,
Mawana Sugars, Sakthi Sugars, Bannari Amman and Dharani Sugars
have not seen any changes to the promoter holdings.
“It (promoters hiking stake) is company specific and cannot be
generalised as a trend because of the cyclical nature of the industry,” said
Mr Jagannadham Thunuguntla, Strategist and Head of Research at SMC
Global Securities.
Promoters increasing stake in
sugar firms (INDIA)
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Techrevo Engineers Serving the
Industry in different ways with
their quality products
Multi fuel Biomass Boilers
Process House Equipment
Press Release
11
Sugar cane production in Brazil's Center South, the main producing
region of the world's largest grower, may be 505 million metric tons in
the 2012-13 season starting in April, according to Jenkins Sugar Group
Inc.
That compares with 493.5 million tons so far in the current 2011-12
season, according to industry group Unica. Most of the harvesting has
already been completed, Unica said on Feb. 14. Jenkins' estimate is lower
than the 520 million tons forecast by Macquarie Group Ltd., Olam
International Ltd. and Kingsman SA and the 522 million tons estimated
by Rabobank International.
“It's a low end of what the range has been for sure,” Jeff Dobrydney, a
vice president at the Wilton, Connecticut- based broker, said by phone
today. “We don't like the prospects of what was replanted year-on-year,
and based on the weather, which wasn't too dramatically different than
last year, we don't see any reason for the crop to improve significantly.”
The sugar cane crop in Brazil's Center South fell for the first time in a
decade in 2011-12 after drought, frost and flowering cut yields,
according to Unica. Flowering reduces the sugar content in the raw
material.
Cane replanting rates have been 10 percent to 12 percent year-on-year,
below the ideal level, Dobrydney said. The crop is also getting old, and
the ideal age of the plants should be 2 years to 2 1/2 years, he said.
“It's an older crop, a crop that has not received enough investment to
propel a 15 or 20 percent crop replanting, which is what you look for at
this time,” he said. “The average age of the cane is probably somewhere
between 3.9 and 4.5 years now and that's certainly much too old.”
Brazil's Sugar Cane Output May
Be 505 Million Tons
“SUGAR LINKS” the first &only Indian
magazine (every Quarterly) dedicated to the
sugar industry.
Launched in Bangkok, Thailand with IMPACT
team. The main motive behind its inceptionis
to strengthen links between manufacturers&
buyers of sugar industry. It aims to provide a
perfect platform to Indian sugar industry to
connect it to International market. However,
this will not only showcase the Sugar industry,
but will also provide a unique insight into
other sector of sugar industry &its by-products
which includes ethanol, co-generation and
much more.
This magazine will be distributed to the top 10
sugar producing countries including
industrial & trade associations, mills,
distilleries, Sugar processing units etc.
In the top 10 countries we consider the Brazil,
India, China, Mexico, Thailand, Pakistan,
Colombia, Australia, Indonesia and USA.
For further information, please contact:
+91 9991705002 | [email protected]
Launching of Sugar Links Magazine
Manoj Singla-Co Editor of Sugar Links from PCSL, India with Impact Team in Thailand
FIJI has a lot to learn from India in terms of maintaining and sustaining a
viable sugar industry. These were the words of Sugar permanent
secretary Lieutenant Colonel Manasa Vaniqi on his return from the
International Sugar Organisation meeting that was held there.
Lt-Col Vaniqi said
despite having 15
m i l l i o n f a r m e r s
w o r k i n g o n f i v e
m i l l i o n h e c t a r e s ,
India's sugar industry
stakeholders worked
in tandem for the
common benefit of the
country as a whole.
"They have a sound
structure. Millers work
to ensure that factories are at their best and produce sugar very efficiently
while growers focus on getting the best yield possible from their cane
fields," he said.
He said Indian farmers also used every means possible to get their cane to
the mills and local growers could take a leaf out of their book.
"Apart from the usual rail and lorry transport, growers there also use
bullocks pulling carts and even people pushing carts ù and the onus was
delivering the best possible cane to the mill on time," said Lt-Col Vaniqi.
Meanwhile, the Indian government has promised to investigate
allegedly faulty equipment used by Indian technicians during mill
upgrades conducted in Fiji between 2007-2010, funded by an Export
Import Bank of India line of credit to the tune of $92.97 million.
How Fiji can learn from India
12
The New Generation “BEVCON SIZER MACHINE” in technical
collaboration with NOMA SIEBTECHNIK, Germany & ROLLIER
IBERICA, S.L., Spain, is a compactly designed unit with multi decks
arranged at various slope angles and a
distribution feeder. This greatly
improves the screening efficiency in
fine screening applications especially
Sugar, Tea, Coffee, Salt, Spices,
Minerals, Chemicals among others and
help achieve large capacities with an
extremely high degree of safety and
extremely Low Maintenance costs. The
Sizer body frame is fitted with the wear resistant liners for efficient flow;
clogs free screening & extended life of the Sizer. Bevcon-Noma Sizer
Machines have a range of separation from 0.1mm to 50mm with two, four
and six decks. Machine width is available from 500 to 3000mm. Options
for material of construction available in carbon steel, stainless steel &
special steel.
For further information contact:
Bevcon Wayors Pvt. Ltd., Ground Floor, Kavya Apartments,
Madhuranagar, Hyderabad - 500 038, Tel: +90 40 23732628, 23747643.
Fax: +91 40 23750435, 66623588., E-mail: [email protected]
Web: www.bevconwayors.com
Saisidha an ISO: 9001-2008
organisation established almost
two decades back, today covers
the entire ambit of Sugar Plants,
Sugar Refineries, Co-generation
Projects, Distillation Units and
allied industries.
With the highly professional
technocrats in its team of
experts, in all unit operations of
sugar plants, Saisidha has
created an enviable track record
in execut ing engineering
p r o j e c t s i n l i n e w i t h
International Standards and
well within stipulated time-
frame.
S a i s i d h a a l s o o f f e r s a
r e v o l u t i o n a r y “ M u l t i
Misalignment Polyester Sling
Coupling” to replace the
conventional tail-bar coupling.
The system offers a safe
transmission of power from
drive to the mills because of its inbuilt design feature enabling it to absorb
mis-alignments of large magnitude without affecting milling operations.
Another patented offering from the house of Saisidha is the “ Condensate
Re-boiler System” for heating of raw juice eliminating use of steam
altogether at this stage.
Revolutionary “Multi Misalignment Polyester Sling Coupling” by Saisidha
The extremely smooth finish of Atul Screens ensures minimum break-
up of the sugar crystal.
The precise sharp and chrome hardened conical slots on Atul Screens
ensures highly efficient crystal separation. Due to their conical shape,
the slots are far less susceptible to clogging or blinding.
The hard chrome plating on the working sides of Atul Screens
increases the wear resistance thereby extending the working life span
considerably.
Due to their good ductility, Atul screens are very easy to mount and
handle.
Atul screens do not deform because of low internal stresses.
The appreciable tensile strength of Atul Screens prevents damages
because of the high centrifugal forces they are subjected to.
Atul Nickel Screens are available in a wide range of slot sizes and
configurations suitable for a variety of continuous centrifugals. A
wide choice of thickness and open area is offered by Atul.
Sucromax
New Nickel Screen with Supreme Performance
Here is one more addition to Atul's pioneering innovations.
Sucromax, the new generation Nickel Screen. This new improved
Nickel Screen is packed with features, each one developed by
anticipating specific customer needs. Sucromax is an innovative idea
that facilitates productivity and profitability in the sugar industry in
more ways than one.
Sucromax has more open area for more output.
Sucromax has reduced slot sizes for more sugar production, which
helps reduce losses and increases sugar yield without losing
throughput. This would also naturally give you reduced final
molasses purity.
Sucromax is made thicker than our standard screen for longer life.
Sucromax increases process efficiency & saves time thereby avoiding
unnecessary energy loss too.
Atul Electro Formers Ltd. | http://aefl.in
Atul Product: A Complete Solution
Product Release
Sugar Day Celebrat ion at ISRMAX Asia 201229-31 August 2012, Hall 8, Impact Exhibition , & Convention Centre, Bangkok (Thailand)
Cont: +91 9812082121, 9991705002 | [email protected]
Sugar Day Celebrat ion at ISRMAX Asia 201229-31 August 2012, Hall 8, Impact Exhibition , & Convention Centre, Bangkok (Thailand)
Cont: +91 9812082121, 9991705002 | [email protected]
Bevcon-NomaSizer Machine with fine Screening application for sugar Industry
We have a great pleasure in introducing
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Carbide Tips for various types of application
related to wear & tear in the industries like;
Sugar, Cement, Automobile, Railways,
Fertilizers, Petro-Chemicals etc.
The most critical components in the Sugar
Industry are Fibrizor hammer, Cane Cutting
Knife, Static Collars, Thrash Plate, Hub for cane
leveler etc. We have a comprehensive range of
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Talk to us about you wear problems, Our highly
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Contact us:
J . D . G u p t a ( D i r e c t o r T e c h n i c a l )
176-A, MIDC, Phase - 1, Dombivli (East), Thane,
Mumbai:- 421 203
+91-0251-2435150
[email protected], www:-imcoalloys.com
Metal Matrix Composites
Boilers and its parts play a crucial role in various
processing and manufacturing applications in a
large number of industries. A technology driven
organization, Sree Krishna Manufacturing Co.
is a reputed manufacturer and supplier of world
class Traveling Grate Stoker, Grate Cast Alloy,
Boiler Spares, etc. Established in the year 2006,
the company has successfully acquired a
significant position in the industry. Under the
able direction of our mentor Mr. T. Polley, we
have acquired a wide clientele of satisfied
customers. Our products have huge demand in
the market and are supplied all over India.
A member of Small Scale industries (SSI) and
National Small Industries Corporation (NSIC),
we are a customer driven organization and
strive to deliver the best possible solutions for
the varied needs of our clients. It is owing to our
untiring efforts that we have acquired
prestigious clients like Bosmit, Cethar Vessels,
Cheema Boilers and others.
Engaged in manufacturing and supplying a
The products of Sri Krishna Manufacturing Company have
brought some evolutionary changes in Sugar Industry�w�i�d�e� �r�a�n�g�e� �o�f� �p�r�e�m�i�u�m� �q�u�a�l�i�t�y� �p�r�o�d�u�c�t�s�,� �S�r�e�e�
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�a �n �d � �w�e � �h �a �v �e � �a �d �d �e �d � �m�a �n �y � �p �r �e �s �t �i �g �i �o �u �s �
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�b�e�l�o�w� �l�i�s�t�e�d� �p�r�o�d�u�c�t�s�:
�T�r�a�v�e�l�i�n�g� �G�r�a�t�e� �S�t�o�k�e�r� �&� �S�p�a�r�e� �P�a�r�t�s
�G�r�a�t�e� �C�a�s�t� �A�l�l�o�y
�B�o�i�l�e�r� �S�p�a�r�e�s
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�s�u�c�c�e�s�s�f�u�l�l�y� �a�c�q�u�i�r�e�d� �a� �s�i�g�n�i�f�i�c�a�n�t� �p�o�s�i�t�i�o�n� �i�n�
�t�h�e� �i�n�d�u�s�t�r�y�.� �L�i�s�t�e�d� �b�e�l�o�w� �a�r�e� �s�o�m�e� �o�f� �t�h�e�
�f�a�c�t�o�r�s� �t�h�a�t� �h�a�v�e� �l�e�d� �u�s� �t�o� �a� �p�r�o�m�i�n�e�n�t� �p�o�s�i�t�i�o�n�:�
�S�u�p�e�r�i�o�r� �q�u�a�l�i�t�y� �p�r�o�d�u�c�t�s�
�A�d�v�a�n�c�e�d� �f�a�c�i�l�i�t�i�e�s�
�L�a�b�o�r�a�t�o�r�y� �F�a�c�i�l�i�t�y� �A�v�a�i�l�a�b�l�e
Proficient workforce
Market leading prices
Wide distribution channel
On-time delivery of products
Prompt customer service
Knack for innovation.
Contact Details :
SREE KRISHNA MANUFACTURING CO.
ISO 9001 : 2008 Certified Company
OFFICE &WORKS :CHAMRAIL, MITRA
NAGAR, EKSHARA, HOWRAH 711 114, WB.
INDIA
Contact Person :
Mr. T. POLLEY (PROPRIETOR) Mobile :
9830232004
Tel. : 03212 246024 | Fax : 03212 246262
E-mail : [email protected] /
Website : www.sreekrishnamfgco.co.in
Article
13
Cover Stroy
14
Shrijee Sugar Projects is the primary and largest
activity of Shrijee Group. Shrijee was
established in 1976 by Mr. G.D Agarwalas a
manufacturer of process house equipment for
sugar industry and is today touching a turnover
of US$ 40 Million. Shrijee has today supplied its
equipment to more than 400 sugar factories in
India and to the leading sugar producers in
more than 20 countries. The corporate
headquarters are in Mumbai (India) and the
regional offices are in Delhi, Ahmednagar and
Chennai. To cater to numerous national and
international clients, there are four fully
equipped manufacturing facilities located in the
western and southern parts of India. These four
facilities are supported by a centralized and
fully equipped design office.
Today Shrijee has executed more than thirty
process house projects and achieved the rare
distinction of manufacturing India's largest
process house (15,000 TCD). Shrijee has
pioneered technologically advanced process
house equipment by launching products such as
the continuous vacuum pan and upgraded
SHRIJEE PROCESS ENGINEERING WORKS LTD. (India)
�p�r�o�c�e�s�s� �t�h�r�o�u�g�h� �c�h�a�n�g�e� �o�v�e�r� �f�r�o�m� �b�a�t�c�h� �t�o�
�c�o�n�t�i�n�u�o�u�s� �o�p�e�r�a�t�i�o�n�.� �S�h�r�i�j�e�e� �i�s� �b�u�i�l�t� �w�i�t�h� �a�
�w�o�r�l�d� �c�l�a�s�s� �w�o�r�k�f�o�r�c�e� �o�f� �2�0�0�+� �e�m�p�l�o�y�e�e�s� �a�n�d�
�t�e�a�m� �o�f� �m�o�r�e� �t�h�a�n� �5�0� �d�e�d�i�c�a�t�e�d� �t�e�c�h�n�o�l�o�g�i�s�t�s�,�
�e�x�p�e�r�t�s�,� �c�o�n�s�u�l�t�a�n�t�s� �a�n�d� �a�n� �e�v�e�r� �i�n�n�o�v�a�t�i�n�g�
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�S�h�r�i�j�e�e�'�s� �C�o�r�e� �S�t�r�e�n�g�t�h�:
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�s�y�s�t�e�m�s
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�w�i�t�h� �h�i�g�h�l�y� �s�k�i�l�l�e�d� �p�r�o�f�e�s�s�i�o�n�a�l�s� �e�n�s�u�r�e�s�
�t�i�m�e�l�y� �c�o�m�p�l�e�t�i�o�n� �o�f� �p�r�o�j�e�c�t�s� �t�o� �c�u�s�t�o�m�e�r�
�s�a�t�i�s�f�a�c�t�i�o�n
�S�h�r�i�j�e�e�'�s� �S�p�e�c�i�a�l�t�y� �E�q�u�i�p�m�e�n�t� �f�o�r� �s�u�b�s�t�a�n�t�i�a�l�
steam saving in process house:
1. Direct Contact Heater
2. Duplex Heat Exchanger
3. Condensate Flashing System
4. Radial Flow Evaporator
5. Falling Film Evaporator
6. Rapid Boiling Pan
7. Continuous Vacuum Pan
Shrijee Sugar Refinery Equipment:
Shrijee has been in the forefront in meeting the
machinery requirement for sugar refineries.
Shrijee has produced and supplied equipment
starting from Melt-Clarification to Refined
Sugar Bagging. Today it has emerged as a
turnkey supplier of Refined Sugar Plants
ranging in capacity from 200 tons/day to 2,500
tons/day. Shrijee has manufactured and
supplied major sugar refinery equipment to
leading sugar producers and also executed
several turnkey refined sugar projects.
Cover Stroy
15
Shrijee's prestigious client lists includes :
Bajaj Hindustan (India)
Balrampur Chini Mills (India)
Bannari Amman (India)
Thiru Arooran (India)
Renuka Sugars (India)
Dharani Sugars Ltd. (India)
Kaset Thai (Thailand)
KSL Group (Thailand)
Mitr Pol Group (Thailand)
NIVL (Vietnam)
NAT&L (Vietnam)
Fiji Sugar Corporation (Fiji)
Fincha Sugar (Ethiopia)
West Kenya Sugars Mills (Kenya)
Kakira Sugars (Uganda)
Kamdhenu Ventures Ltd. (Cambodia)
PG. Kebon Agung (Indonesia)
And many more…
SHRIJEE ACHIEVEMENTS
Shrijee has supplied Sugar Plants &
machinery to more than 20 countries in the
world.
In 2007, Shrijee manufactured & supplied
India's biggest Process House of 15,000
TCD on turnkey basis for Bajaj Hindustan
Ltd.
In 1992, Shrijee was the first company to
develop the Continuous Vacuum Pan in
India, and has today supplied more than
180 units all over the world.
In 1996, Shrijee manufactured the biggest
Continuous Pan for 'A' Massecuite in the
world and supplied to Kaset Thai,
Thailand.
Shrijee's unique design of Vertical
Continuous Cooling Crystallizer brings
down sugar loss in molasses (by 4-5 units
purity drop across the crystallizer). Shrijee
has supplied over 150 Vertical Crystallizer
worldwide.
In 2000, Shrijee launched Planetary Gear
Drive for crystallizers in India resulting in
savings of upto 70% power in the
crystallizer section.
Shrijee is the largest supplier of Process
House Equipment in Fiji, having supplied
and commissioned 3 turnkey projects
valued at US $ 15 million.
Shrijee has been recognized as Export
House by Government of India, and has
won several awards in recognition of
export excellence from Export Promotion
Council.
Shrijee has today successfully diversified
in the fields of Sugarcane Agriculture
Equipment, Power Transmission Towers,
Solar Structures and Green-Energy
Ventilation systems.
Contact Shrijee:
Shrijee Group. A-504/505, Dynasty, Near
Kohinoor Hotel, J.B. Nagar, Andheri-Kurla
Road, Andheri (EAST), Mumbai - 400059, India.
Tel. : + 91 - 22 - 40501000, Fax : + 91 - 22 - 40501010
Email: [email protected], Web: www.shrijee.com
Interview
16
Sugar prices may rise to Rs 31/kg in few months: Balrampur
region.
A: I am very positive. Rangarajan committee
met yesterday and I feel pretty certain after
this kind of an opening up. We never had
exports, which said 40 lakh tonne can go
out of the country and there is no need for
any license or permission. This is a
precursor. I feel very positively inclined
and if I look forward to the Rangarajan
committee, which is a time-bound
p r o g r a m, I a m
positively inclined
t o w a r d s
deregulation.
A: Even with this,
there is small leg up
of Rs 1.50. I don't
think it is going to
turn profitable very
soon because cane
price has been paid and other costs have
also been incurred, so if we get there at
least in the last four months where we sold
new sugar, we have lost money. We will
stop losing money at Rs 31-32.
A: ISMA is in dialogue, that is the job but I feel
positively inclined. You have 20
committees, they don't need a committee
to tell them what to do. All the committees
have a point and it is clearly said whether it
is Thorat Committee, Mahajan Committee,
Nand Kumar Committee. There have been
a plethora of committees, so if you want the
exact truth, they know what to do.
Q: It has also raised the hopes of further
measures of decontrol in the market, do
you see this as being a precursor to
further partial deregulation as well?
Q: N o w t h a t y o u
e x p e c t a n
improvement in
the realizations on
the back of exports
being al lowed,
when will your
sugar division turn
profitable now?
Q: What makes you hopeful that there
maybe some movement on decontrol,
things have not moved fast on the policy
front and perhaps the government would
chose to go with just this shifting into
open general and expecting the sugar
companies to work with that for the time
being, any other headway that has been
made between Indian Sugar Mills
Association (ISMA) and the government
officials?
However, this is an online committee.
Previous committees were committees
which had retired judge or retired
bureaucrat, but this committee is headed
by DrRangarajan who is the head of Prime
Minister's Economic Advisory Council
(PMEAC). He is far more in the loop of
things and I personally feel therefore that
this committee it is going to give its report
very soon and it is in the highest quarters of
the government.
A: Too early for next year. This year, we will
be around 26 million tonne. After
monsoon, after the survey, probably
August-September is a better time for next
year.
A: We have had dialogues with the
government, our representations at least
reveal that they want to look at reality and
they are aware of reality. Having said that,
t h e b a s i c t h i n k i n g t o w a r d s
industrialization being positive that every
government must have a balance of all,
that is how they think and that is how I
think they feel. I am pretty sure the things
will look positive in UP also in terms of
whatever benefits we should get.
Q: How are things progressing on the
production front itself in terms of what
production for this year has been and
what kind of early indications there are
for next year, is it looking like another
surplus here?
Q: When we spoke in March, that time this
rate was very optimistic when Samajwadi
Party came into power in UP and there
were hopes that there would be a lot of
incentives, which will be given for sugar
production, has anything of that played
out up until now or any early signs?
Sugar stocks have held up quite well after the
government removed cap on sugar exports and
brought it under open general license (OGL). This
step will primarily aid millers to clear cane arrears.
Vivek Saraogi, managing director, Balrampur
Chini expects to see some improvement in
domestic prices after this move.
Despite this, the company doesn't expect to turn
profitable very soon. " Even with this, there is
small leg up of Rs 1.50 . I don't think it is going to
turn profitable very soon because cane price has
been paid and other costs have also been
incurred," he elaborates
He sees sugar prices rising to Rs 31 per kg in a
few months.
A: There will be an improvement in the
domestic prices post this announcement.
We have seen the improvement beginning
yesterday. My personal view is prices
should improve from here as we proceed.
A: In Uttar Pradesh (UP) ex-mill price is about
Rs 29.50 before the announcement. It is
very difficult to predict exact numbers, but
it could go up by a rupee or a rupee and a
half easily as we proceed into the next
couple of months.
A: Even in the earlier days we never exported.
When you had a license which you could
sell, we sold the license. So, exports will
happen from South mainly. We have Tamil
Nadu, Karnataka and Maharashtra, so all
the export now will happen from that
Q: Could you walk us through the direct
benefit the BalrampurChini sees on the
back of yesterday's news?
Q: Where are prices at right now and how
much of a leg up do you think the
domestic prices will get in that case?
Q: What is the situation right now amongst
companies like yours in terms of having
the capacity to export and whether or not
the export market still remains lucrative?
Mr. Vivek Saraogi
MD, Balrampur Chini Mills Ltd.
News
17
Brazil's center-south, the main sugar growing
region of the world's biggest producer, may
reap its second-largest crop in history this
season, and still fail to compensate for an
anticipated decline in the Indian harvest.
Center-south output will rise 5.8 percent to 33
million metric tons in the season starting in
April, according to a Bloomberg survey of 12
analysts. India, the second-biggest producer,
will probably make 24 million tons in its season
starting in October, a 15 percent decline, a
survey of 14 analysts showed.
Global supply will match demand, compared
with a 4.5 million-ton surplus in the current
season, the London- based International Sugar
Organization estimates.
The projected disappearance of a supply
Brazil Sugar Crop Seen Failing to
Compensate for Indian Dropsurplus is coming at a time of record global
consumption. Sugar futures plunged 27 percent
last year, the biggest decline in a decade, as the
glut emerged after three consecutive annual
shortages. Prices more than doubled in 2009
when demand exceeded production by 12.6
million tons, enough to supply Egypt for four
years.
“There is increased speculation that the current
surplus will weigh on prices, reducing the
incentive to boost production,” said Keith Flury,
an analyst at Rabobank International in London.
“That coupled with concerns about Indian
farmers reducing cane acreage has increased
expectations that the globe may shift back into
deficit next season.”
The government must now step in and address
the cyclical sugar shortages which have, in the
last the past four months, pushed up retail
prices by more than 45 per cent.
It should also seek ways to remedy policy
failures which are largely responsible for the
shortage.
F i r s t , t h e
government
should sell
its stake in
the sugar
industry to
a l l o w f o r
injection of
f u n d s b y
p r i v a t e
investors to
r e v i t a l i z e
the sugar
mills where
the state has
a controlling majority.
This will enhance production capacity and
encourage competition.
The government should also force the Kenya
Sugar Board to come up with workable
solutions to help farmers increase cane
production.
The next step should be to stop pursuing
protectionist policies which bar the import of
sugar while the bottlenecks that lead to
shortages and high prices are not addressed.
How to lower sugar prices?
(Africa Sugar) 2012Under the Comesa treaty, Kenya is allowed to
import sugar from any of the 23 member
countries at a reduced tariff.
This, together with the fact that some of the
countries produce sugar at half the local
production costs, should help drive down retail
prices.
T h a t w a s
supposed to
h a p p e n i n
2001, but the
g o v e r n m e n t
l o b b i e d t h e
regional bloc
f o r a
moratorium,
s a y i n g t h e
local industry
needs time to
build capacity
s o i t c a n
compete with
c h e a p e r
imports.
A decade later, nothing has happened. And all
indications are that the government will be
lobbying for a fourth extension when the current
one expires on June 30 next year.
This must not be allowed to happen. If local
millers cannot produce enough sugar to meet
demand, then it should be imported from
Comesa countries.
This, however, must be done in a structured way
to ensure sugar barons do not take over the
importation and conspire to keep the prices
high.
Mumbai, Centre for Monitoring Indian
Economy (CMIE) has said the production of
sugar will fall by 9.8 per cent in FY 13 due to
lower availability of sugarcane.
CMIE, which has forecast 18 per cent growth
in sugar production in FY 12, observed that
the fall in fiscal 2012-13 is due to shrinkage of
area under sugarcane production.
“Area under sugarcane will shrink as farmers
turn to alternative crops following mounting
cane arrears in FY12,” CMIE said in its
monthly report here.
As a result, the production of food products
and beverages, in which sugar is a major raw
material, will see a minimal growth of only 0.5
per cent in FY13 after estimated to have
grown by a healthy 15.8 percent in 2011-12, it
said.
With a fall in the domestic sugar production,
output of molasses will also fall, which is
expected to pull down the output of industrial
alcohol, it said.
“We expect output of manufactured food
products and beverages to remain almost flat
in FY13. This will be essentially on the account
of supply constraints, mainly of sugar,” CMIE
said.
Besides, the production of soybean and
mustard oil, which too are the key ingredients
in the food products and beverages, is
expected to fall in FY13.
“Lower production of soybean and mustard
seeds in the domestic market and ban on
import of oil seeds is expected to result in low
oil production.”
However, output of other manufactured food
products and beverages is expected to rise in
the year.
“We expect output of biscuits, instant food
mixes, milk powder, beer, IMFL (Indian made
foreign liquor) and aerated water and soft
drinks to rise by around 2-8 per cent in the FY
13,” CMIE said.
Sugar production
to fall 9.8% in FY13:
CMIE
Press Release
18
BASF acquires Novolyte Technologies
BASF becomes global supplier of Lithium
Battery Electrolyte formulations
Further step to becoming leading provider of
functional materials and components to cell and
battery manufacturers worldwide
Performance materials business strengthens
BASF's Intermediates portfolio in North
America
Ludwigshafen, Germany and Cleveland, Ohio
April 26, 2012 BASF, Arsenal and Foosung
today announced BASF's acquisition of
Novolyte Technologies, based in Cleveland,
Ohio (USA). Novolyte is a manufacturer of
electrolyte formulations for lithium-ion
batteries, as well as specialty chemicals for
several key market segments. With 167
employees, Novolyte operates sites in the
United States and China. BASF purchases
Novolyte from Arsenal Capital Partners, a U.S.-
based private equity firm. The companies have
agreed not to disclose financial details of the
transaction. The acquisition comprises
Novolyte's Energy Storage activities focused on
developing, producing and marketing
performance electrolyte formulations for
lithium-ion batteries. BASF also buys
Novolyte's performance materials business in
which the company is among the leading
manufacturers of specialty chemicals in North
America. The portfolio includes aryl
phosphines, high-performance solvents and
custom-made specialties. The acquisition
includes 10 patent families in the fields of
electrolyte formulation and performance
chemicals held by Novolyte. Additionally
within the framework of the acquisition, BASF
will continue a joint venture of Novolyte with
Korean partner Foosung Co., Ltd., a global
producer of the high-purity specialty salt
Lithium Hexafluorophosphate (LiPF6), a key
material for manufacturing lithium-ion battery
electrolytes. These electrolytes are key
performance components in the fast-growing
market of lithium-ion batteries for automotive,
consumer and industrial markets. Novolyte
operates production sites in Baton Rouge,
Louisiana, and in Suzhou, China. An additional
site for LiPF6 production is currently under
construction in Nantong, China, to be operated
by the Foosung/BASF joint venture. Both
Chinese sites are located in the greater Shanghai
area. “With this recent acquisition, BASF is now
positioned as a global supplier of lithium
battery electrolytes with production sites in
Europe, the United States and Asia Pacific
region“, said Dr. Andreas Kreimeyer, Member
of the Board of Executive Directors and BASF's
Research Executive Director. He added: “The
acquisition also complements our current
offering of Amines, Diols, Organic Acids,
Polyalcohols and Specialties and strengthens
Announcement from BASF, Arsenal and Foosung our footprint in the North American market.”
”Our acquisition of Novolyte Technologies
further positions BASF to achieve its long-term
objective of becoming the leading provider of
functional materials and components to serve
cell and battery manufacturers worldwide,”
said Ralf Meixner, Senior Vice President of
BASF's Global Battery Materials Business. “This
is the latest in a
series of strategic steps we have taken to
strengthen our technology position while
building a broad portfolio of battery materials
technologies that will help us drive the future of
electromobility.” “Foosung is very excited to
work with the world-renowned chemical
company BASF in this fast-growing battery
materials market,” said Hanjoo Song, Chief
Executive Director of Foosung. “Through this
newly established joint venture company,
Foosung can retain its position as a high-quality
LiPF6 manufacturer while pursuing further
opportunities to support the development of the
global battery market." “We are delighted to see
Novolyte find a great home. We have enjoyed a
great partnership with Foosung and are pleased
that this platform and its employees will be part
of the world's leading chemical company with a
great commitment to electromobility,” said John
Televantos, Partner, Arsenal Capital Partners,
New York.
BASF's electromobility activities Innovative
materials and functional components are
prerequisites for safe, efficient and affordable
electromobility. Together with partners in
industry and science BASF is developing
materials and technologies for today's and next
generation lithium-ion batteries as well as for
future battery systems. The aim is to reduce the
time to market for new solutions to energy
storage. A major step on this road is the
construction of a manufacturing plant for
battery materials in Elyria, Ohio. Along with
battery materials, plastics and composites for
lightweight automotive design and solutions
for improved heat management, such as IR-
reflective pigments for coatings and vehicle
interior uses, have major roles to play. Follow
this link for more about BASF's battery
a c t i v i t i e s : h t t p : / / w w w . b a t t e r y -
solutions.basf.com
About BASF BASF is the world's leading
chemical company: The Chemical Company. Its
portfolio ranges from chemicals, plastics,
performance products and crop protection
products to oil and gas. We combine economic
success, social responsibility and environmental
protection. Through science and innovation we
enable our customers in almost all industries to
meet the current and future needs of society.
Our products and system solutions contribute
to conserving resources, ensuring healthy food
and nutrition and helping to improve the
quality of life. We have summed up this
contribution in our corporate purpose: We
create chemistry for a sustainable future. BASF
posted sales of about €73.5 billion in 2011 and
had more than 111,000 employees as of the end
of the year. BASF shares are traded on the stock
exchanges in Frankfurt (BAS), London (BFA)
and Zurich (AN). Further information on BASF
is available on the Internet at www.basf.com.
About Arsenal Capital Partners Arsenal Capital
Partners is a leading New York-based private
equity firm that invests in middle-market
specialty industrial, healthcare and financial
services companies. Arsenal makes investments
in sectors where the firm has significant prior
knowledge and experience. Arsenal targets
businesses that have the potential for further
value creation by working closely with
management to accelerate growth and leverage
the firm's operational improvement capabilities.
Arsenal currently has $800 million of committed
equity capital. For additional information on
Arsenal Capital Partners, please visit
www.arsenalcapital.com.
About Foosung Foosung Co., Ltd. has been
supplying a variety of high quality fluoro
products since the 1980's. Our high quality
fluoro products have been used in fluoro
chemical compounds for the refrigerator and air
conditioner, semi-conductor, and in electrolytes
for Lithium batteries. The business portfolio of
Foosung can be classified into three sectors:
manufacturing and retailing basic chemical
compounds, the Clean-Development-
Mechanism (CDM) business, and car mats for
the automotive industry. Foosung has
diversified its overall profit structure to
electrolytes for Lithium-ion batteries and to the
CDM business instead of the high level of
dependence on refrigerants gas in the past.
Foosung has a leading position in the key
industry field and aims to further grow through
continuous R&D and investments in eco-
friendly technologies. For additional
information on Foosung please visit
www.foosung.com.
Product Release
19
H I G H V I S C O U S I T Y
(20,000 CST) & ECO
FRIENDLY LUBRICANT
FOR SUGAR MILLS
SUGARPRESS BR is
biodegradable
SUGARPRESS BR is non
toxic
Consumption savings of
upto 1:10 compared to
asphaltic oils and of up to
5 0 % c o m p a r e d t o
graphite type greases.
Clean lubrication from the start.
High protection against seizure and wear,
avoiding expensive repairs.
CENLUB SYSTEM provides customized
Lubrication solutions for sugar millssolutions for centralized
lubrication of sugar mill
including designing,
m a n u f a c t u r i n g ,
i n s t a l l a t i o n a n d
commissioning.
LUBEMAN is one stop
for all needs related to
f l u i d m a n a g e m e n t
system, auto greasing
s y s t e m s , s p e c i a l t y
l u b r i c a n t s a n d
implementation services. LUBEMAN offers
services like market development, sales
support and after sales support for its partners
in India & abroad.
www.lubeman.com, [email protected]
ROCHEM offer following solution platforms:
1. Reverse Osmosis (PT-RO) : The majority of
dissolved salts, organics, bacteria and
suspended solids are unable to physically pass
through the membrane and are discharged in
the concentrate. The permeate / pure water is
recovered.
2. Nanofiltration (PT-NF) : Almost like RO, it
also removes many of the harmful metals and
organics. However, it will allow sodium
chloride (salt) to pass through.
3. Ultra Filtration (FM-UF) : This membrane
process is used to separate large molecular
substances. It will reject all bacteria and is
effective to disinfect domestic water supplies.
Over and above all other industrial effluents,
achieving of zero liquid discharge (ZLD) for
distillery spent wash has been a techno-
commercial challenge. Irrespective of making
significant investment in various methods for
the same, the results have historically not been
reliable & of commercial success. However,
ROCHEM now is pleased to offering ZLD
Options customized to Distillery specific
requirement.
ROCHEM undertakes complete after
sales/product support and related services.
ROCHEM is currently managing more than
100 sites through a dedicated team of over 400
trained service personnel through a Pan India
Service Network.
Cont:
Rochem Separation Systems (I) P. Ltd
101, HDIL, Anant Kanekar Marg, Bandra East,
Mumbai - 40005, Maharashtra, India.
Website: http://www.rochemindia.com
MAGNISERTM SPECIFICATION:
Evaporator Scale Formed is soft in
nature
Reduction in cleaning chemical costs
due to reduced scaling pattern
Reduction of labour costs due to easy
and lesser number of cleaning.
Reduction in downtime of the
processing unit.
Saving in known and unknown losses
owing to stoppage of periodical
cleaning.
No external power required total
maintenance free system
The % reducing sugar and % sludge in
the final molasses is not affected
Overall increases in performance and
efficiency of the plant.
Technology based on patented “Flux
Magneto Fluid Dynamic Technology.”
Manufactured by:
703, Snehal Apts/, j.P. Nagar Road, No 5
Goregaon (E) Mumabi-400063
www.suntechglobal.com
Marketing Associate:
8/2, Ravi Bldg., Navi Peth
Near Alka Talkies, Pune 411 030
020-243279994
MAGNISER
An innovative non chemical
scale control system
Stainless steel has been the preferred material
of construction for Sugar Industries. They
have been in use for different applications
including Pipe & Tubes. The excellent
corrosion and wear resistance, higher life
cycle and maintenance free operation gives,
Stainless steel an edge over other material.
However higher initial capital cost gives the
Mill owner to think of other low cost
substitute material. Normally Carbon Steel
comes as an option to lower down the initial
Capital investment, In most of the case this
become false economy due to frequent
replacement.
Conventionally SS 304 is being considered as
a material of construction. High & Volatile Ni
price makes SS 304 a costly grade. With
extensive research, simulation and field
trials, UNS S20430 stainless steel has been
found as a cost effective alternate to SS304.
While offering same product attributes &
performance the grade offers scope for
approx 30 % cost reduction.
The Chemistry of this grade is designed in
such fashion that it offers best of 304 and well
suited for most of the application in Sugar
industry.
The Different Sugar Companies has welcomed
this research & development and started using
this for different applications like Vacuum
Pan, Evaporator, different Tube & pipes.
For further information please visit:
Www.jslstainless.com
By Pratik Jha& C P Agrwal, Market Development, Jindal Stainless limited, Delhi
UNS S20430: A cost effective alternate to SS 304
Water purification systems by ROCHEM
New Appointment atSaisidha Sugar Equipment & Eng. Co. Pvt. LtdSaisidha has always been on the lookout for
top notch technical personnel to augment its
techno-commercial capabilities. Information
on two of the new entrants in brief is as listed
below,
A) Mr. V. Vijayandran, a
Sugar Technologist
having nearly thirty
years of experience in
sugar sector has been
inducted as Director
of the company. He,
to his credit has the
patented design of “Condensate Re-
boiler” system for energy saving in
sugar boiling/processing which Saisidha
offers in all its projects.
B) M r . C . J o s h i , h a s
nearly forty years of
experience in sugar
and International
Marketing and has
j o i n e d a s V i c e
P r e s i d e n t
, I n t e r n a t i o n a l
Business to explore territories in overseas
market.
New Appointments
20
Researchers at the NCERC have successfully
produced ethanol from the cellulosic portion of
the corn kernel.
“This research is demonstrated proof of the
viability of 'generation 2.0 ethanol,'” NCERC
Director John Caupert said. “By utilizing existing
technologies readily available in the commercial
marketplace, the Center was able to produce a
biofuel that builds upon the strengths of
conventional corn ethanol and the promise of
cellulosic ethanol, thus making bolt-on cellulosic
ethanol a reality.”
Caupert added that the potential for cellulosic
ethanol has significant immediate and long-term
impacts on the biofuels industry generally and
the ethanol industry specifically.
“Any of the 211 existing ethanol plants in the
United States could be retrofitted with existing
bolt-on technologies to produce cellulosic ethanol
from corn without the need to build new
facilities,” Caupert said. “This translates into
opportunities for jobs and economic
development, particularly in rural areas.
According to the Illinois Renewable Fuels
Association, the ethanol industry provides more
than 4,000 full-time jobs with an economic impact
exceeding $5.29 billion in Illinois alone. There are
currently 14 ethanol plants online in the state.
New generation of ethanol coming upNCERC Assistant Director of Biological Research
Sabrina Trupia emphasized the importance of the
demonstration in future research opportunities.
“This is a significant milestone with immediate
industry impact, but producing cellulosic ethanol
from corn bran is also proof that cellulosic ethanol
could be produced at NCERC utilizing any
cellulosic feedstock,” Trupia said. “From a
research perspective, this is only the first step in a
very exciting road toward a future of energy
security.”
The NCERC credits a series of actions, grants and
capital gifts for making the research possible,
including the formation of the NCERC Technical
Advisory Committee in 2008, the Center's 2009
Advanced Biofuels Initiative, and two significant
capital gift donations: a corn fractionation system
(2010) and fermentation suite (2011). These steps
were complemented by a research and
development grant through the Illinois
Department of Commerce and Economic
Opportunity.
“It's the culmination of four years of activity here
at the Center, and a shining example of a public-
private partnership that works,” Caupert said.
“With the NCERC's vision to be feedstock
agnostic, the Center is actively seeking industry,
a c a d e m i c , a n d g o v e r n m e n t a g e n c y
partnerships.”
New
s
News
21
New Delhi: CII welcomes the Union
Government's decision to remove the cap on
sugar exports and place the commodity under
the open general license category like wheat and
rice. This was one of the key recommendations
under phased decontrol of the sugar proposed
by CII's Sugar Committee.
Welcoming the announcement Mr Ajay
Shriram, Vice President CII and Senior
M a n a g i n g D i r e c t o r , D C M S h r i r a m
Consolidated Ltd
said “The step was
long awaited and
t h e i n d u s t r y
w e l c o m e s t h e
G o v e r n m e n t ' s
decision as it will
help the industry
get some much
n e e d e d r e l i e f .
Further decontrol
o f t h e s u g a r
industry is the only
way to achieve the
sugar sector's full
potential. We hope
and expect the
Expert Committee,
headed by Dr. C.
Rangarajan will
r e c o m m e n d
further reforms like removal of levy sugar,
linking of sugarcane price to sugar price etc.
soon, and these recommendations will be
implemented by the Government without
further delay”.
This is a step towards streamlining all policy
issues in the sugar sector to the best advantage
of farmer, industry and consumers and to
ensure a buoyant growth for the sector.
However complete liberalization of the sugar
sector is a must so that sugar prices are
determined by the market forces ensuring better
competition and benefits to all the stakeholders
involved including cane farmers.
CII suggests the following 5 point action plan to
decontrol the sugar industry;
1. Unviable sugar price with no linkage to cane
price makes it difficult to give remunerative
cane price to farmers. A new formula needs be
coined in order to link sugarcane price directly
to sugar realization and realization from cane by
products.
2. Sugar is sold by sugar factories on the basis of
release orders issued quarterly by the Sugar
directorate, GoI. The release mechanism
through orders needs to be discontinued and
strategic stock to be maintained by the
Government to have better cash management
and enable timely payments to the farmers.
3. Levy obligations are imposed on the sugar
industry at prices which are much lower than
Five Point Action Plan for Deregulationthe cost of production which causes a huge loss
to the industry (around Rs 3000 crores). The
industry supplies 10% of its output to the
Government, much below market prices. These
obligations should be done away with. The
Government can maintain supply of sugar
through PDS by buying from the open market as
in done in the case of rice & wheat.
4. The Government decides the minimum
percentages from time to time for compulsory
packaging of sugar in jute bags whereas no other
industry has the restriction over the packaging
material. The packing cost of sugar in jute bags is
very high compared to the other packaging
material. The Government should fully exempt
the sugar industries from compulsory
packaging in jute bags and should Allow
packaging of sugar in any food grade bags
5. Molasses, a byproduct of sugar industry, has a
vital role to play in alcohol industry and also in
production of Ethanol for blending with petrol.
However, lack of a proper ethanol pricing
formula is affecting its use in its blending with
petrol. Therefore, government needs to finalize
ethanol pricing formula
Indian sugar industry is one of the main drivers
of the country's rural economy supporting its
agricultural growth. The industry worth around
Rs 75,000/- crores is the largest agro based
industry in the country. Located in the rural
heartland, it supports 50 million farmers and
their families directly or indirectly and
generates employment for around 12% of the
entire rural population (in major 9 sugar
producing States). With an estimated annual
sugar production capacity of 30 million tons
from around 5 million hectares of land under
cultivation it is also one of the most
environmentally friendly and green industry.
CII believes that phased decontrol of the sugar
industry will help in achieving the sectors full
potential.
MUMBAI A shortage of water has stunted
the growth of sugarcane in Maharashtra and
sugar output from the state, India's largest
producer of the sweetener, could drop unless
it receives adequate rains during the June-
September monsoon season, industry
executives said Monday.
Sugarcane is a long-duration crop and needs a
lot of water. Farmers in Maharashtra planted
the crop between June and July 2011 and now
it is in its growth stage. Its harvesting will
start in October.
Inadequate rains toward the end of the last
monsoon and lower pre-monsoon showers
this year have created a water shortage for the
crop during the critical growth period,
potentially affecting its yield and sucrose
content.
Rains in Maharashtra between March 1 and
April 25 were 59% below the level considered
normal, according to the India Meteorological
Department.
"There could be a 10% fall in overall
production [in Maharashtra] next season, if
the water shortage continues," said
AjitChougule, managing director of
Maharashtra State Co-op Sugar Factories
Federation Ltd.
Sugar production in Maharashtra is
estimated to be about nine million metric tons
in the current marketing year, which ends on
Sept. 30.
Lower production in Maharashtra, which
accounts for one-third of India's output, may
affect the country's overall sugar production
in 2012-13. The expectation of a decline in
output may also limit the scope of more sugar
exports next marketing year.
The country has allowed about three million
tons of sugar exports in 2011-12 and mills are
demanding to allow another one million tons.
The monsoon season is critical for the cane
yield and if the water availability remains
inadequate, Maharashtra's cane production
may decline even beyond 10%, said a senior
executive at a large sugar mill in the state.
The weather department said last week that
the possibility of El Nino -- a weather
condition associated with below-normal
rains -- can't be ruled out in the latter part of
this year's monsoon season.
If there is enough rainfall during the season,
yields may improve, limiting the damage,
added B.B. Thombare, chairman of Natural
Sugar & Allied Industries Ltd., a sugar mill
based in Maharashtra.
Water Shortage
Threatens India
Cane Crop
12
34
5
Knowledge
22
SUGAR MANIASugar:
Sugar is the generalized name for a class of
sweet-flavored substances used as food. They
are carbohydrates and as this name implies, are
composed of carbon, hydrogen and oxygen.
There are various types of sugar derived from
different sources. Simple sugars are called
monosaccharides and include glucose, fructose
and galactose. The table or granulated sugar
most customarily used as food is sucrose, a
disaccharide. Other disaccharides include
maltose and lactose.
Types:
Granulated Sugar
There are many different types of granulated
sugar. Most of these are used only by food
processors and professional bakers and are not
available in the supermarket. The types of
granulated sugars differ in crystal size. Each
crystal size provides unique functional
characteristics that make the sugar appropriate
for the food processor's special need.
"Regular" Sugar, Extra Fine or Fine Sugar
"Regular" sugar, as it is known to consumers, is
the sugar found in every home's sugar bowl and
most commonly used in home food preparation.
It is the white sugar called for in most cookbook
recipes. The food processing industry describes
"regular" sugar as extra fine or fine sugar. It is
the sugar most used by food processors because
of its fine crystals that are ideal for bulk
handling and are not susceptible to caking.
Fruit Sugar
Fruit sugar is slightly finer than "regular" sugar
and is used in dry mixes such as gelatin desserts,
pudding mixes and drink mixes. Fruit sugar has
a more uniform crystal size than "regular" sugar.
The uniformity of crystal size prevents
separation or settling of smaller crystals to the
bottom of the box, an important quality in dry
mixes and drink mixes.
Bakers Special
Bakers Specials crystal size is even finer than
that of fruit sugar. As its name suggests, it was
developed specially for the baking industry.
Bakers Special is used for sugaring doughnuts
and cookies as well as in some commercial cakes
to produce fine crumb texture.
Superfine, Ultrafine, or Bar Sugar
This sugar's crystal size is the finest of all the
types of granulated sugar. It is ideal for extra
fine textured cakes and meringues, as well as for
sweetening fruits and iced-drinks since it
dissolves easily. In England, a sugar very similar
to superfine sugar is known as caster or castor,
named after the type of shaker in which it is
often packaged.
Confectioners (Powdered) Sugar
This sugar is granulated sugar ground to a
smooth powder and then sifted. It
contains about 3% corn starch to
prevent caking. Confectioners'
sugar is available in three grades
ground to different degrees of
fineness. The confectioners' sugar
available in supermarkets is the
finest of the three and is used in
icings, confections and whipping
cream. The other two types of
powdered sugar are used by
industrial bakers.
Coarse Sugar
The crystal size of coarse sugar is
larger than that of "regular" sugar. Coarse sugar
is normally processed from the purest sugar
liquor. This processing method makes coarse
sugar highly resistant to color change or
Inversion (natural breakdown to fructose and
glucose) at high temperatures. These
characteristics are important in making
fondants, confections and liquors.
Sanding Sugar
Another large crystal sugar, sanding sugar, is
used mainly in the baking and confectionery
industries to sprinkle on top of baked goods.
The large crystals reflect light and give the
product a sparkling appearance.
Sugar produced in India is mainly of granulated
type. Granulated sugar is further classified in to
various types based on color and grain size.
A c c o r d i n g t o t h e I n d i a n S t a n d a r d s
Specifications (ISI), there are around 20 grades
of sugar based on the grain size and colors. The
color series has four grades designated as
30,29,28 and 27, while the grain size has five
grades namely A, B, C, D, E. Bulk of production
in the country is of C, D and E grains, branded as
large, medium and small and has color
specification of 30. The D grade produced in the
country is comparable to world standards.
Brown Sugars - Turbinado Sugar
This sugar is a raw sugar which has been
partially processed, removing some of the
surface molasses. It is a blond color with a mild
brown sugar flavor and is often used in tea.
Brown Sugar (light and Dark)
Brown sugar consists of sugar crystals coated in
a molasses syrup with natural flavor and color.
Many sugar refiners produce brown sugar by
boiling a special molasses syrup until brown
sugar crystals form. A centrifuge spins the
crystals dry. Some of the syrup remains giving
the sugar its brown color and molasses flavor.
Other manufacturers produce brown sugar by
blending a special molasses syrup with white
sugar crystals. Dark brown sugar has more color
and a stronger molasses flavor than light brown
sugar. Lighter types are generally used in
baking and making butterscotch, condiments
and glazes. Dark brown sugar has a rich flavor
that is good for gingerbread, mincemeat, baked
beans, plum pudding and other full flavored
foods.
Muscovado or Barbados Sugar
Muscovado sugar, a British speciality brown
sugar, is very dark brown and has a particularly
strong molasses flavor. The crystals are slightly
coarser and stickier in texture than "regular"
brown sugar.
Free Flowing Brown Sugars
These sugars are fine, powder-like brown
sugars that are less moist than "regular" brown
sugar. Since it is less moist it does not lump and
is free-flowing like granulated white sugar.
Demerara Sugar
Popular in England, Demerara sugar is a light
brown sugar with large golden crystals which
are slightly sticky. It is often used in tea, coffee or
on top of hot cereals.
Liquid Sugars
Liquid sugars were developed before today's
methods of sugar processing made transport
and handling granulated sugars practical. There
are several types of liquid sugar. Liquid sucrose
(sugar) is essentially liquid granulated sugar
and can be used in products wherever dissolved
granulated sugar might be used. Amber liquid
sucrose (sugar) is darker in color and can be
used where the cane sugar flavor is desirable
and the non-sugars are not a problem in the
product.
Invert Sugar
Inversion or chemical breakdown of sucrose
results in invert sugar, an equal mixture of
glucose and fructose. Available commercially
only in liquid form, invert sugar is sweeter than
granulated sugar. One form of liquid invert was
specially developed for the carbonated
beverage industry and can be used only in
liquid products. This liquid sugar is actually
part invert sugar combined with part dissolved
granulated sugar. Another type, named total
invert sugar syrup, is commercially processed
and is almost completely invert sugar. It is used
mainly in food products to retard crystallization
of sugar and retain moisture.
The latest data from UNICA, the Brazilian
sugarcane industry, shows that the crucial
centre-south crop which accounts for almost
90% of the country's sugarcane output is doing
much better than expected earlier this season.
If it weren't for exceptionally heavy floods
across much of Thailand, international futures'
prices would much lower than the 26
cents/pound or so they are right now.
First to Brazil. Since 1 April this year and up to 16
October the cane crush has been 436.538 million
tonnes, a bit more than 7% lower than for the
same period of the 2010-2011 season. Total sugar
production was 27.732 million tonnes, a
negligible 3% lower year-on-year, and the
average yield per tonne was 137.7 kilogrammes,
just 2.66% down compared to last season. The
bottom line is that while this season is not great,
and is lower than last year, the 2011-2012 season
is (so far) shaping up to be much better than
those between 2007-2010, in terms of
accumulated sugar production. The only
question mark hanging over the amount of
sugar available for export from Brazil is the
sugar/ethanol ratio currently that is running at
almost 50:50. The inexorable growth in Brazil's
flex-fuel car fleet will continue to soak up a lot of
ethanol.
The other major sugar producer (and potential
exporter this season), India, is also doing
Brazil is doing better in sugar industrycomparatively well and ought to produce
enough sugar during 2011-2012 to satisfy local
needs, and have as much as 4 million tonnes
available for export, if there is little or no stock
rebuilding.
But the flooding in Thailand is becoming a
serious threat, not so much to sugar production,
but the financial and logistical support that's
needed for sugar exports. Out of 77 provinces,
62 have experienced floods. It's the worst
flooding the country has seen in 50 years and has
dislocated around 2.5 million people. The
governor of Bangkok said on Wednesday (26
October) that: “massive water is coming”. If the
dykes that ring much of the city burst then many
parts of Bangkok will be flooded, causing severe
disruption. Previously we have expected
Thailand to be able to export as much as 9 million
tonnes from its 2011-2012 sugarcane harvest.
The seasonal cane crushing has been delayed
until late November and, while the crush target of
around 90 million tonnes is still achievable,
inevitably there will be lengthy delays in getting
the sugar out to market. But Thailand's
unfortunate floods are pretty much the only
bullish factor around for sugar right now. They
might help keep prices at or above 26
cents/pound but longer-term the price ought to
come down to the marginal cost of production of
around 20-22 cents.
Sugar surplus may fall by 1 million
tons on BrazilThe world sugar surplus may be 1 million metric
tons smaller than estimated in the coming season
because of a supply shortfall in Brazil, according
to the International Sugar Organization.
The ISO in May initially predicted production
would outpace demand by more than 3 million
tons in the 2011-12 season starting in October.
Sugar output in Brazil's main producing region
will fall for the first time in six years in the season,
industry group Unica said yesterday. The
country is the world's largest producer of the
sweetener.
“Lower production in Brazil in 2011-12 and a
forecast for reduced output in 2012-13 may
lead the surplus to shrink by as much as 1
million tons,” Leonardo Bichara, a senior
economist at the ISO, said by phone today from
London.
The organization slashed its estimate for total
Brazilian sugar production in 2011-12 to 38.5
million tons from about 40 million tons, Bichara
said. Output in the following season will come to
42 million tons, 2 million tons less than predicted
previously, he said.
“World stocks will continue to be low and prices
are unlikely to fall below 20 cents a pound, which
is the cost of production in Brazil,” he said.
Raw sugar for October delivery was recently
down 0.94 cent, or 3.1 percent, at 29.30 cents a
pound on ICE Futures U.S. in New York. At
yesterday's close, prices had climbed 24 percent
in a month on concern production in Brazil would
be lower than first estimated.
The surplus for the current 2010-11 season may
still increase on higher output estimates for
Thailand, the second- largest sugar exporter, and
weaker growth in usage, according to Bichara.
“Consumption growth is likely to be reduced to
1.5 percent in 2010-11 from the 2 percent initially
forecast,” he said. “High prices could also dent
demand in 2011-12.”
Dhampur Sugar climbs 5%, Shree Renuka
jumps 4.38%
Amid weakness in the broader market, sugar
stocks gained on Thursday after the
government on Wednesday removed the cap
on sugar exports through the quota system and
brought the commodity under the open general
licence (OGL) category similar to rice and
wheat.
Shares of Shree Renuka Sugars jumped 4.38 per
cent to Rs 32.20 on expectations that realisations
would improve. Dhampur Sugar climbed 4.95
per cent to Rs 48.75. Dalmia Sugar, Simbhaoli
Sugars, Uttam Sugar advanced 4.88 per cent,
3.33 per cent and 2.39 per cent, respectively.
Triveni Engineering, Bannari Amman Sugar
and EID Parry added 2.69 per cent, 1.45 per cent
and 0.14 per cent, respectively. Industry majors
Bajaj Hindusthan and BalrampurChini gained
1.33 per cent and 1.21 per cent, respectively.
“The market remained weak on Thursday as
rupee continued to send weak cues. Sugar
shares, though, saw buying after the
government removed the cap on sugar exports
and placed it under the open general license
category,” said Alex K Mathews, head of
research at Geojit BNP Paribas.
The move is said to fasten sugar exports and
clear cane arrears, which have crossed the Rs
10,000 crorelevel.
Sanjay Manyal, FMCG expert at ICICIDirect,
said: “Sugar companies were earlier required to
take permission from the government for
shipments, which is now been lifted. One must
note that we have a fixed export quota of 3
million tonnes of sugar and when the limit is
reached, the government will again consider its
decision. Companies such as Shree Renuka,
which have significant exposure to south India
and Maharashtra, will be the major
beneficiary.”
So far, only 3 million tonnes of sugar exports
was approved for the year ended September 30.
Manyal said north Indian players might not be
that keen to export because of higher cost of
transportation.
Estimates for the sugar year, if comes lower than
the present estimate of 26 million tonnes could
favour sugar companies, he said.
JagannadhamThunuguntla, head of research
and strategist at SMC Global Securities, citing
the cyclical nature of the sector said, “We advise
investors to book profits at present levels.”
Meanwhile, sugar prices on global commodities
market slipped after India's decision as there are
excess supplies amid already high expectations
from Brazilian harvest season. Sugar
production up to the end of April for the current
sugar season stood at 251 lakh tonnes.
Sugar stocks rally on
removal of export cap
News
23
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