Sugar Industry in India

About Sugar Industry in India

Sugar consumption rate is highest in India as shown in the statistics received from USDA Foreign Agricultural Service. However, as per production is concerned, India has notched up 2nd position following Brazil, the largest sugar producer in the world.

The Indian sugar industry uses sugarcane in the production of sugar and hence maximum number of the companies is likely to be found in the sugarcane growing states of India including Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Andhra Pradesh. Uttar Pradesh alone accounts for 24% of the overall sugar production in the nation and Maharashtra's contribution can be totaled to 20%.

There are 453 sugar mills in India. Co-operative sector has 252 mills and private sector has 134 mills. Public sector boasts of around 67 mills.

Sugar Industry set up across India

• Andhra Pradesh Sugar Industry
• Bihar Sugar Industry
• Gujarat Sugar Industry
• Haryana Sugar Industry
• Himachal Pradesh Sugar Industry
• Karnataka Sugar Industry
• Madhya Pradesh Sugar Industry
• Maharashtra Sugar Industry

• Chhattisgarh Sugar Industry
• Manipur Sugar Industry
• Orissa Sugar Industry
• Punjab Sugar Industry
• Tamilnadu Sugar Industry
• Uttaranchal Sugar Industry
• Uttar Pradesh Sugar Industry
• West Bengal Sugar Industry

Beginning of Sugar Industry in India

Sugar is made from sugarcane, which was arguably discovered thousands of years ago in New Guinea. From there, the route was traced to India and Southeast Asia. It was India which began producing sugar following the process of pressing sugarcane to extract juice and boil it to get crystals.

It was in 1950-51 the government of India made serious industrial development plans and set the targets for production and consumption of sugar. It projected the license and installment capacity for the sugar industry in its Five Year Plans.

Types of Sugar Industry in India

The sugar industry can be divided into two sectors including organized and unorganized sector. Sugar factories belong to the organized sector and those who produce traditional sweeteners fall into unorganized sector. Gur and khandsari are the traditional forms of sweeteners.

Manufacturing Process followed in Sugar Industry in India

Several steps are usually followed to produce sugar. These steps can be mentioned as below:

• Extracting juice by pressing sugarcane
• Boiling the juice to obtain crystals
• Creating raw sugar by spinning crystals in extractors
• Taking raw sugar to a refinery for the process of filtering and washing to discard remaining non-sugar elements and hue
• Crystallizing and drying sugar
• Packaging the ready sugar

 

Machinery Suppliers for Sugar Industry in India

Some of the suppliers that offer cutting-edge machines to the companies involved in sugar industry of India are:

• Sakthi Sugars Ltd
• Sri Sujay Engineering Products
• Sri Vijayalakshmi Industries
• Murthy Industries
• Parveen Perforaters & Allied Industries
• Aeromen Engg Co
• Kamla Foundry & Workshop
• Tinytech Plants
• Baba Vishwakarma Engineering Co. (P) Limited

Software Companies in India

It's the technological revolution that at times brings surprising opportunities for some nations. India, though not among the front runners in terms of economic growth, has successfully utilized such opportunities in the revolution to become an IT hotspot. For the past several years, India has been an increasingly favored destination for customized software development. As a result, a number of software companies in India have come up. Not only the number of players has increased in the Indian IT market, but at the same time, Indian software companies have done considerably well in the global market. Such huge success of software companies in India has given birth to a new speculation – whether other developing countries should imitate Indian example and whether the success of India would constitute a competitive challenge to the software industry of the developed world or not.

The Software Industry in India

With the huge success of the software companies in India, the Indian software industry in turn has become successful in making a mark in the global arena. This industry has been instrumental in driving the economy of the nation on to a rapid growth curve. As per the study of NASSCOM-Deloitte, the contribution of IT/ITES industry to the GDP of the country has soared up to a share of 5% in 2007 from a mere 1.2% in 1998. Besides, this industry has also recorded revenue of US$ 64 billion with a growth rate of 33% in the fiscal year ended in 2008.

The export of software has also grown up, which has been instrumental in the huge success of the Indian software companies as well as the industry. In fact, software export from India accounts for more than 65% of the total software revenue. The domestic software market largely depends upon sale of software packages and products, which constitute major part of revenues. Products account for almost 40% of the domestic market. On the other hand, more than 80% of revenue from software exports comes from software services like custom software development and consultancy services etc.

Reasons behind Success of Indian software companies

There are a number of reasons why the software companies in India have been so successful. Besides the Indian software companies, a number of multinational giants have also plunged into the India IT market.

India is the hub of cheap and skilled software professionals, which are available in abundance. It helps the software companies to develop cost-effective business solutions for their clients. As a result, Indian software companies can place their products and services in the global market in the most competitive rate. This is the reason why India has been a favorite destination for outsourcing as well. Many multinational IT giants also have their offshore development centers in India.

IT Business Sectors

Most of the software companies in India are into varied types of business. There can be several types of business in the IT sectors:

• Infrastructure Software: These include OS, middleware and databases.
• Enterprise Software: These automate business process in diverse verticals like finance, sales and marketing, production and logistics.
• Security Software
• Industry-specific Software
• Contract Programming

Top Software Companies in India

There are plenty of software companies in India which have been doing well. However, some of the top Indian software companies can be listed as:

• Tata Consultancy Services
• Wipro Limited
• Infosys
• HCL Technologies
• Tech Mahindra
• Patni Computer Systems
• i-flex Solutions
• MphasiS
• L&T Infotech
• IBM India

Polymer Industry in India

Polymers account for around 70% of petrochemicals and that is the reason that they are the most important constituent of theIndian chemical industry.

Polymers are essentially used in the manufacture of various plastic products. In the consumption of the basic petrochemical, polymers form the bulk of demand with a share of around 55%.

The share of polymers in the product mix inIndia for various crackers ranges from 60% to 90%. The segment of polymers have registered a growth of 18% while there have been an increase of 26% in the capacities CAGR.

The various byproducts of polymers are:

• Polystyrene
• PVC
• Poly propylene
• LDPE/ LLDPE
• HDPE

Polystyrene, a byproduct of polymers has a Rs 435 crore market size. Its market price was around Rs 42.5 per kg in 1999. The major companies involved in the production of polystyrene are Rajasthan Polymers, Mc Dowell & Co., and Supreme Petrochem. PVC, a polymers byproduct, is in demand in theIndian market at 554,000 tons per annum.

This segment has been growing at the rate of 15% yearly. Around 54% of PVC is used in the manufacturing of pipes and 14% is used in the production of cable sheathing. The cost of PVC was Rs. 44.95 per kg in 1999. The main companies involved in the production of PVC are IPCL and RIL.

Polypropylene is a very light weight polymer and that is the main reason why it is used as a substitute for various other polymers. During 1997-1998, around 11,000 tons of poly propylene was imported. Over the last 3 years, the demand for this product has increased by 38% and now stands at 595,000 tons. The price of polypropylene was Rs 47.50 per kg in 1999. It is mainly used in the manufacture of injection molding, BOPP, ropes, twines, and In India, low-density polyethylene (LDPE) and linear low density polyethylene (LLDPE) are also widely used polymers. This segment of polymers is growing at the rate of 12% per year. More than 50% of LDPE/ LLDPE is used by the packaging industry and they were priced at around Rs 54.25 per kg in 1999. The companies which make LDPE/ LLDPE are Oswal, RIL, and IPCL. The second most used polymer inIndia is HDPE, with a share of 22%. The value of its domestic consumption is Rs 2, 123 crore and it is growing at the rate of 15% per year. It cost around Rs. 50 per kg in 1999. HDPE is used in the manufacturing of raffia, blow molding, injection molding, and in the paper industry as well. The companies involved in the production of HDPE are NOCIL, RIL, and IPCL.

Polymers form an important constituent of theIndian petrochemical industry. So efforts must be taken by the industry and the government ofIndia, so that the production and quality of polymers remain top class.

Petrochemical Industry

The petrochemical industry in India has been one of the fastest growing industries in the country. Since the beginning, the Indian petrochemical industry has shown an enviable rate of growth. This industry also has immense importance in the growth of economy of the country and the growth and development of manufacturing industry as well. It provides the foundation for manufacturing industries like construction, packaging, pharmaceuticals, agriculture, textiles etc.

The Indian petrochemical industry is a highly concentrated one and is oligopolistic in nature. Even a few days back, only four major companies viz. Reliance Industries Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas Authority of India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate the industry at a large extent. The recent amalgamation of IPCL with RIL has made the industry more concentrated further, as they jointly account for over 70% of country's total petrochemical capacity. However, the scene is a bit different for the downstream petrochemical sector, which is highly fragmented in nature with over 40 companies exist in the market.

The Characteristics of Indian Petrochemical Industry

Petrochemical Industry in India is a cyclical industry. This industry, not only in India but also across the world, is dominated by volatile feedstock prices and sulky demand. India has one of the lowest per capita consumptions of petrochemical products in the world. For example, the per capita consumption of polyester in India lies at 1.4 kg only comparing to 6.6 kg for China and 3.3 kg for the whole world. Similarly, the per capita consumption of polymers is 4 kg in India, whereas the per capita consumption is around 20 kg for the whole world.

The Growth

The petrochemical industry in India came into existence during 1970s. The 1980s and 1990s saw some rapid growths for Indian petrochemical industry. The biggest reason for this growth was the high demand for petrochemicals in India, which grew at an annual rate of 13 to 14% since late 90s. It also called for rapid expansion of capacity. The BMI forecast of average annual growth in India over 2007-2011 is 14 to 16%. However, the industry suffered setbacks during 2008 due to surge in the price of crude oil. It will be tough for Indian petrochemical industry to plug the deficit of 5mn TPA of ethylene and 4mn TPA of polymer by 2012 (according to the predictions of the government).

The Present Scenario Presently India has three gas-based and three naphtha-based cracker complexes with a combined annual capacity of 2.9 MMT of ethylene. Besides this, there are also 4 aromatic complexes with a capacity of 2.9 MMT of Xylenes.

The production of 5.06 MMT polymers during FY09 accounted for around 62% of the total production of key petrochemicals. It also achieved 88.5% capacity utilization. The industry also produced 2.52 MMT of synthetic fibres during FY09 with a 73% of capacity utilization.

Key Segments

Petrochemical industry is constituted of the following key segments:

• Polymers:
  
  The demand for polymers saw a growth of 13.4% during 2007, comparing to a demand growth of 5.6% in 2006. According to the prediction of Chemicals and Petrochemicals Manufacturers' Association (CPMA), the demand growth for polymer would further be augmented to over 15% in the coming year.
• Polyester Intermediates: The combined production of 5 fibre intermediates (CAN, DMT, Caprolactum, MEG and PTA was 3,417 KT during 2007. Among those, PTA and MEG accounted for 69% and 27% respectively, while the rest were DMT, Caprolactum and CAN.
• Aromatics (Paraxylene): The demand for Paraxylene (PX) saw a growth of 18% during 2007. According to the prediction of CPMA, it is expected to grow at the same rate in the coming year as well.
• Benzene, Toluene, MX and OX: The demands for Toluene and OX saw a contraction rate of 4% and 10% respectively during 2007. However, Benzene and MX saw a positive growth though.

Top Petrochemical Companies in India

Though the Indian petrochemical industry is highly dominated by only a few players, however, there are a number of petrochemical companies in India, doing their share of business. Some of the top companies can be listed as below:

• Reliance Industries Ltd.
• Haldia Petrochemicals Ltd.
• Indian Oil Corporation
• Gas Authority of India Limited
• National Organic Chemical Industry Ltd.
• Bongaigaon Refinery and Petrochemicals Ltd.
• Manali Petrochemical Limited
• I G Petrochemicals Limited
• The Andhra Petrochemicals Limited
• Tamilnadu Petroproducts Limited

Jute Industry

Jute is otherwise known as the 'Golden Fiber' -a plant that produces a fiber, mainly used for sacking and cordage. This raw material is used for sacks, globally and is the most versatile fibers of nature. Different forms of handicrafts also use this fiber. Jute is cheap and important among all textile fibers, after cotton.

Potential of Jute industry

The jute industry has been expanding really fast spanning from a wide range of life style consumer products, with all courtesy to the versatility of Jute. Innovative ways of bleaching, dyeing and finishing processes - the jute industry now provides finished jute products that are softer, have a luster and also an aesthetic appeal.

Changing scenario of Jute industry

At present, jute has been defined as an eco-friendly natural fiber with utmost versatility ranging from low value geo-textiles to high value carpet, apparel, composites, decoratives, upholstery furnishings etc.

In future, a number of jute mills and mini-jute plants have been seen to be engaged in jute products and jute blended yarns. We all know that the uses of jute are manifold, with the traditional usage pattern remaining constricted to packing, hessian and carpet backing.

The jute sector in India engages a key role in the Indian economy, providing direct employment to about 0.26 million workers, and supporting the lives of around 4.0 million farm families. Around 0.14 million people are believed to be engaged in the tertiary sector, that supports the jute industry. Currently it also contributes to exports to the tune of about Rs. 1000 crore.

Jute Production in India

Import of Raw Jute in 2008-09 has dropped by 66% in quantity and by 55% in value terms, whereas import of jute products saw a surge by 23% in quantity and by 47% in value terms when compared with the figures of 2007-08. The EXIM Policy states that import of raw jute and jute products in India should be considered as free items without duty.

Import of jute and jute products in last 3 years

Qty: M.Ton and Value: Rs. /Lakhs

Period	2008 - 2009	2007 - 2008	2006 - 2007
Qty.	Value	Qty.	Value	Qty.	Value
Raw Jute	59,042	8,900.31	1,71,800	19,672.39	94,363	15,031.15
Jute Products	70,935	20,299.48	57,688	13,809.41	60,932	17,162.87

State-wise Jute production in the last 3 years

Period: July-June / Area: '000 Hectares / Qty: '000 Bales

	2006-07		2007-08		2008-09 (Estimated)
State	Area	Production	Area	Production	Area	Production
West Bengal	595	8411	610	8216	584	7900
Bihar	127	1253	131	1251	147	1402
Jharkhand	-	-	-	-	-	-
Assam	58	559	60	657	61	674
Orissa	5	48	6	50	11	104
Uttar Pradesh	-	-	-	-	(0.1)	1
Tripura	1	4	(0.5)	4	1	8
Meghalaya	4	35	4	35	6	50
Nagaland	2	6	3	6	2	21
Others	-	-	-	-	-	-
Total	792	10316	814	10219	812	10160