Shree Renuka Sugars Share Price Today

History of Shree Renuka Sugars

Shree Renuka Sugars Ltd (SRSL) was founded in 1995 in Mumbai. It is involved in the production and refining of sugar, ethyl alcohol, and ethanol and the generation and distribution of electricity. The company operates as a subsidiary of Wilmar Sugar Holdings Pte Limited and has a presence in various sectors, making it an emerging player in the ethanol market. The company was listed on October 7, 2005.

Shree Renuka Sugars operates seven integrated sugar mills and two state-of-the-art sugar refineries across India. Not content with its domestic success, the company expanded its footprint to Brazil in 2009. In Brazil, it established four sugar mills and embarked on sugarcane plantations sprawling over 1,00,000 hectares. This strategic move catapulted Shree Renuka Sugars into the global arena, and today, it stands as one of the world’s largest players in the sugar and ethanol industry.

The company’s remarkable global presence is reflected in its impressive revenues, surpassing US$1.5 billion. With a commitment to excellence and sustainability, Shree Renuka Sugars Limited continues to shape the landscape of the sugar industry on a global scale.

Business Segments

SRSL, a subsidiary of Wilmar Sugar Holdings PTE Limited, manages integrated sugar mills and port-based refineries in India. The company’s core activities encompass Sugar, Ethanol, and Power generation. Let’s take a closer look at their business segments:

1. Sugar: SRSL manufactures and markets White/Refined Sugar under the brand name “Madhur Sugars.” The company operates seven sugar mills across India, boasting a total crushing capacity of 7.1 million metric tonnes per annum (MTPA) or 35,000 tonnes crushed per day (TCD). Additionally, it manages two sugar refineries located at ports, with a combined capacity of 1.7 MTPA.
2. Ethanol: The company produces three grades of ethanol (Absolute Alcohol, Rectified Spirit, Extra Neutral Alcohol) as a by-product of sugar manufacturing. Ethanol is used as a bio-fuel and chemical ingredient and is supplied to the alcohol industry. Its distillery boasts a significant capacity of 930 thousand litres per day (KLPD), with 630 KLPD from molasses to ethanol conversion and an additional 300 KLPD from rectified spirit to ethanol.
3. Power: Renewable power is generated from bagasse (a sugarcane byproduct) for in-house consumption and sale to the state grid. With a total cogeneration capacity of 242 megawatts (MW), the company has an exportable surplus of 135 MW.
4. Bhumadur Organic Manure: SRSL manufactures organic manure, known as Bhumadur, using sugarcane press mud and distillery spent wash.

Key Personnel

• Narendra Murkumbi, MD and Vice Chairman 

Narendra Murkumbi’s journey with Shree Renuka Sugars began in 1998 when he founded the company. The initial capital for this venture was partially provided by local sugarcane farmers, reflecting the strong community ties that underpin the company’s origins. Over the past 12 years, Shree Renuka Sugars has transformed into a fully integrated sugar manufacturer, boasting substantial capabilities in power generation, ethanol production, and sugar refining.

Corporate Actions

Face Value Split 

• Shree Renuka Sugars Limited underwent a face value split from ₹10 per share to ₹1 per share. This split occurred on April 10, 2008, and was completed on April 21, 2008.

Bonus

• Shree Renuka Sugars Limited announced a bonus issue in a 1:1 ratio on March 15, 2010.

Financial Performance

1. Total revenue has exhibited robust growth, increasing by 18% from the previous year, reaching ₹22,865 Mn, up from ₹19,401 Mn. Notably, the refinery segment played a pivotal role, contributing around 70% of the total income.
2. Gross profit witnessed a significant improvement, advancing from ₹3,048 Mn to ₹3,562 Mn, marking a solid 17% increase.
3. EBITDA also showed impressive performance, rising from ₹1,102 Mn to ₹1,468 Mn, indicating a remarkable 33% surge. This enhancement was further reflected in a 74 basis point increase in the EBITDA margin.
4. The surge in sales volume was driven primarily by two key factors:
   1. A remarkable 33% growth in domestic sugar sales, with consumer pack sales within this category experiencing a 9% uptick.
   2. The refinery segment also contributed to volume growth with a 2% increase.