Safe
Harbor
Some of the statements in this document that are not
historical facts are forward-looking statements. These
statements entail risks and uncertainties that could cause
actual events to differ materially from these forward-looking
statements. These risks include, but are not limited to, the
level of market demand for our product, market situation for
our key inputs, market conditions that could cause our
customers to reduce their spending for our products, our
ability to create, acquire and build new businesses and to
grow our existing businesses and other risks not specifically
mentioned herein but those that are common to industry.
The Company does not undertake to update these
statements publicly to reflect changed eventualities.
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Business Overview
Product overview
Management Vision and Ethics
Industry Dynamics
Financial Highlights
Strategic Outlook
First entry mover advantages: One of oldest producer of Starch
in India and third largest in India as per production.
Long lasting relationship with biggest brands and end users
Consistent expansion results in huge jump in capacity from 1800
TPA in 1943 to over over 4 Lacs TPA in 2013-14
Diversification across customers and end-markets
Efficient working capital management: Low gearing with overall
debt
Company
established
its first facility
with
a
capacity of
1800 TPA at
Phagwara
(Punjab).
1943
Starts
modernisation
of
phagwara
facility
and
expand
capacity
to
12700 TPA.
1944
Cogoes
public
thereby
creating
a
wider
financial
base for itself
and at the
same
time
opening up
to
new
horizons.
1965
1967
Company
expands
Crushing
at
Phagwara to
36000 TPA.
1975
Company
Commissions
Liquid
Glucose Plant
at Phagwara
with
100%
indigenous
technology.
1980
Consolidation
and
Expansion of
Capacities at
both
the
facilities
in
Punjab from
36000TPA to
54000
TPA
and A.P. from
12700 TPA to
54000 TPA.
Company
commissions
MonoHydrate
Dextrose
Plant
at
Phagwara
with
100%
Indigenous
Technoogy.
1982
Company
acquires Vijoy
Steel
and
General Mills
Company
Limited.
1985
86-92
Company
venture
out
of
Punjab
and
commissions
the
second
greenfield
facility
at
Nizambad
(A.P.)
to
produce corn
starch.
Company
Commissions
Anhydrous
Dextrose
plant
at
Phagwara
with
100%
Indigenous
Technology.
1993
1996
Company
Commissions
Sorbitol 70%
Sol.
At
Phagwara
with
100%
Indigenous
Technology
Commissiong
of HP Plant
2002
Company
commissions
the
Third
greenfield
facility
at
Malda (West
Bengal)
to
produce
corn starch.
2007
2013
Capacity
of
Malda
unit
trebled
with
addiional plant
for
mfg.
Dextrose
Monohydrate
capacity 50 TPD
.
 Growth
of Maize Starch industry has doubled
in the last 5 years in terms of grinding
capacity of Maize
 North
America is expected to lead the
global modified starch market with share
of 39 percent followed by Asia-Pacific (29
percent) and Europe (27 percent) in terms
of consumption.
 Due to opening up of the FDI in Retail sector,
more international players likely to penetrate
the Indian Market
•
Change in Consumer Behaviour with respect to habits &
patterns of food consumption.
•
Packaged ready-to-eat food is the order of the day due
to ready OTC availability.
•
Increase in requirements of modified and value-added
starch products i.e. its derivatives, in the packaged food
industry.
“Malls” / “Departmental Stores” culture has taken over
age-old next-door “Baniyaa” culture in India especially in
Tier 1 and Tier 2 cities.
High-fructose corn syrup, also high-fructose maize syrup in other
countries—comprises any of a group of corn syrups that has
undergone enzymatic processing to convert some of its glucose into
fructose to produce a desired sweetness. HFCS mainly used in Aerated
drinks world over. In India, it is sugar, due to cheap pricing of sugar.
Beer industry substituted sugar with High Maltose Corn Syrup (HMCS) and
Dextrose, both derivates of Maize Starch. Government may earmark a
minimum %age of HFCS instead of sugar in the manufacture of Aerated
drinks and Beer.
Manufacturers of Aerated Drinks yet to substitute sugar with an alternative.
Enquiry made by manufacturers of Aerated Drinks and Beer, as to an
alternative of sugar has increased in last few years Potential growth of use
of HFCS foreseen in immediate future.
• In USA & China, 3-4 types of corn available i.e. industry-specific types
• In India, Corn was Corn – no such segregation done due to ignorance
on the part of farmers. Type of corn available was not standard on every
purchase, due to different types of hybrid seeds used for growing corn.
• Profits of the Maize Starch Industry are expected to rise as reduction in
production costs due to better recovery by using industry-specific corn,
recently, as also by direct purchases from the farmers
• Increase in consumption of Maize products can check on the pricing of
Sugar and Government may give incentives to starch industry in future

Quality is the life line of every business and
Company committed to satisfy customers by
manufacturing & supplying quality products
to their entire satisfaction

Sukhjit is an innovation company : Products,
technologies, processes, business models and
strategies

Addressing new growth areas

Capable of identifying and using
breakthrough innovations
 Sukhit
believes that its products improve
the quality of people’s lives
 Respect for people and nature
 Deeply committed to the social upliftment
and all round society welfare
 Prevention of environment hazards along
with the business/economic growth
 Channelise youth energy for productive
use

Last decade Industry grew by 2 times of GDP : still huge gap in
global average and India’s consumption level

Industry growing at 20% rate: China consumption grew by 4
times in last decade

Per capita consumption still very low: ¼ of the consumption as
comparison to china.

More than 1000 application in developed countries

Cargill India setting up a corn milling plant in Karnataka with an
initial investment of Rs 500 crore to tap the fast-growing market
In cr
2013
2012
2011
2010
2009
Net
Profit
21.58
22.10
38.78
14.67
11.61
Net Profit (In Cr)
40
35
30
25
Net Profit (In Cr)
20
15
10
5
0
2009
2010
2011
2012
2013
In cr
Revenue
(annual)
2013
2012
2011
2010
2009
419.74
354.33
339.06
258.54
202.62
Revenue (in cr)
500
400
300
200
Revenue (in cr)
100
0
2009
2010
2011
Revenue (in cr)
2012
2013
2009
2010
2011
2012
2013
NPM in %
5.14
6.24
11.44
5.68
5.73
OPM in %
12.25
12.36
18.60
12.98
12.23
20
18
16
14
12
10
NPM
8
OPM
6
4
2
0
2009
2010
2011
2012
2013

Modified starch market will grow from estimated $12.76 billion
in 2012 to $15.23 billion by 2017 with 3.2 percent CAGR during
the same period.

In some products, the Statutory permissible limit of usage of starch is
still very low in India compared to the permissible limits in other
American and European countries. Government may consider and
thereby make necessary amendments in the permissible limits

Increase in consumption of Maize products can check on the pricing
of Sugar and Government may give incentives to starch industry in
future

4 industrial sectors ( Pharma, Food and Beverages, Textile &
Paper) which are demand driver for the industry are doing
extremely well & expected to continue the uptrend in 2014
Reach us : Mr Rishi K, Senior Director
Reliant Investor Relations Consultancy
research@rirc.in
+91 9582111450
+91 75061 31222
+91 11 2244 4422