SWOT ANALYSIS OF KASHIPUR SUGAR MILLS LTD

Description
SWOT ANALYSIS OF KASHIPUR SUGAR MILLS LTD

Kashipur Sugar Mills Ltd

Parent Company

Kashipur Sugar Mills Ltd.

Category

Food Processing and products

Sector

Foods and Beverages

Tagline/ Slogan

-

USP

One of the top Sugar industry players

STP

Segment

Industrial users of Sugar and related products

Target Group

Sugar Brokers and Wholesalers

Positioning

One of the top sugar industry players SWOT Analysis

1. It is an established player in the sugar industry with an installed capacity of 2500 TCD at its Kashipur plant 2. Acquisition by DSM, which is one of the largest integrated sugar processing company in India provided the much needed technical support and funds to the company 3. After the takeover, modifications were made to increase the cane crushing and reduce process losses, which made the unit achieve better working results 4. The Company has no outstanding term loans from banks/FIs instead of belonging to the Sick Industrial Companies Act 5. Presence of temporary labor force during peak period ensures Strength maximum profits

1.The Company has not been able to achieve desired utilization levels Weakness on account of various technical limitations in its manufacturing process

3. Not announcing dividends due to losses reduces the investors’ confidence in the company 2. The Company continues to suffer on account of inadequate availability of sugarcane

1. Venture into alternate sources of generating power provides a huge opportunity to KSML, which the company is not doing at present 2. Decontrol of Sugar industry which is under discussion would improve the stability of the industry and will increase the profits of sugar processing companies 3. Petroleum Ministry has implemented mandatory 5% ethanol blending in petroleum, which provides an alternative market to Opportunity producers

1. KSML has only one manufacturing plant which increases its risk in case of a plant failure or maintenance issues 2. Cheap sugar imports are harming the existing sugar mills in India and leading them to crisis 3. Sugar industry is very volatile as many factors including rainfall, cultivated area and transportation cost affects sugarcane prices and Threats hence make this industry unpredictable

Competition

1. Bannari Amman Sugars Limited 2. Shree Renuka Sugars Limited 3. Sakthi Sugars Limited 4. Dhampur Sugar Mills Ltd. 5. Kesar Enterprises Limited Competitors 6. Simbhaoli Sugars Limited



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