Description
SWOT ANALYSIS OF PONNI SUGARS

Ponni Sugars (Erode) Ltd

Parent Company

Ponni Sugars and Chemicals (PSCL)

Category

Food Processing

Sector

Food and Beverages

Tagline/ Slogan

Partnering with paper to prosperity

A company with a difference because of various features like its USP backward integration with paper. STP

Segment

Industrial users of sugar and sugar related products

Target Group

Sugar brokers, wholesalers and food processing industries

Positioned as a company with a difference because of various Positioning features like its backward integration with paper SWOT Analysis

1.It is an efficient and quality producer of sugar, catering to both domestic and international markets 2. The Erode sugar mill has successfully implemented an innovative Lift Irrigation Scheme by bringing in dry lands under cane cultivation, utilizing the effluent discharge of the neighboring paper mill. This has provided many benefits – providing a dependable and perennial source of irrigation to farmers in the neighborhood, resolving the raw material needs of sugar and paper mills 3. It Pioneered long sugar season 4. It is a very Customer focused company Strength 5. Innovative structuring as backward integration to paper.

Weakness

1. Volatility in sugarcane prices. 2.Sugar industry is obliged to supply 10% of its production at

substantial concessional price, much below the cost of production, to the Government for supply to the Public Distribution System (PDS).

1. Scope for technology upgradation. Opportunity 2.Opportunities in terms of export to new emerging markets.

1.Cheap sugar imports are harming the existing sugar mills in India and leading them to crisis 2. 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.Ugar sugar works Ltd. 2.Dhampur sugar mills 3.Simbhaoili sugar mills Competitors 4. Shree Renuka sugars Ltd.



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