Balrampur Chini Mills Limited
Corporate Presentation
July - 2017
Safe Harbour
Certain statements in this document may be forward-looking statements. Such forward-
looking statements are subject to certain risks and uncertainties like government actions,
local political or economic developments, agricultural policies, climatic conditions,
technological risks, and many other factors that could cause our actual results to differ
materially from those contemplated by the relevant forward-looking statements. Balrampur
Chini Mills Limited will not be in any way responsible for any action taken based on such
statements and undertakes no obligation to publicly update these forward-looking
statements to reflect subsequent events or circumstances.
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Table of Content
3
Global Scenario
Indian Scenario
BCML
BCML Financial Performance
Global Scenario
The Global Story – Emerging Trends

Global sugar demand is expected to increase to 190 mn tones by 2021 and 240 mn tones by
2030 compared to 173 mn tones in 2016

Asia will remain the biggest consumer of sugar, increasing its share of total consumption from
around 40% to 45% by 2021

By 2030, India and China will still remain the biggest consumers accounting for nearly 25% of
global consumption

Consumption in Europe is expected to remain stable

Africa will also begin to emerge as a major consumer by 2030
5
Global Sugar Status
6
Fig. in Mln tons



Over last 20 years sugar production has risen by 42%
to over 170 mn tones

Global consumption expected to rise to 240 mn tones
by 2030

Production gap requires to be met over the next 15
years
Concentrated Industry
Brazil has almost reached its saturation point, which
currently accounts for 45% of global exports
Weather – A key Determinant


Industry is mature and increasing production is difficult
given the demand on acreage
India, Africa and EU Key to fill Demand


2017-18P
Supply Mismatch


2016-17E
World sugar production still heavily dependent on
weather and continued cyclical production patterns
Sugar Diversion to Ethanol

Sugarcane is also getting diverted towards Ethanol
globally in view of need to produce green power
44
42
Sugar Production
171
180
Internal Consumption
173
175
Consumption Growth Y-o-Y
1.4
1.4
Closing Stock
42
47
Months of Consumption
2.9
3.2
Sugar Opening Stocks
E = Estimated; P = Projected
Global Sugar Scenario - Updates
7
China
EU


Production in 201617 was ~ 16.2 mn
tones
Production in 201718 is expected ~
18-19 mn tones

Sugar output expected to be
around 9.3 mn tones ~ 1.1
lac mt higher than previous
year

Demand
expected
increase to ~15 mn tones

Imports are forecast at 6.5-7
mn tones
CS Brazil

Sugar production ~ 38 mn
tones in 2016-17

CS Brazil likely to produce
~35 mn tons in 2017-18

Reduction in mainly on
account of heavy rains which
disrupted harvesting in May
to
Thailand

Production is
expected ~ 11.1
mn tones

Exports expected
to increase ~2%
to 9.0 mn tones
Indian Scenario
Indian Sugar Industry – Size & Overview
Area under Sugarcane:
Sugarcane Production:
5.3 million hectares [sugar season 2015-16]
337 million tones [sugar season 2015-16]
Number of Sugar Mills in Operation:
Average Capacity of Sugar Mills:
Production of Sugar:
3,800 TCD
25.1 million tones [sugar season 2015-16]
Average per capita consumption:
Refinery capacity:
526 [sugar season 2015-16]
19.6 kgs of sugar and 4.1 kgs of other sweeteners
4.50 million tones
Provides direct employment:
~5 million workers
9
Domestic Sugar Balance
10
2013
2014
7.6
8.2
6.5
8.8
7.7
4.2
25.1
24.3
28.3
25.1
20.2
25.0
Increase in Production
-4.56%
-3.19%
16.46%
-11.31%
-19.52%
23.76%
Internal Consumption
23.0
24.0
24.8
24.6
24.2
24.8
2.68%
4.35%
3.33%
-0.81%
-1.63%
2.48%
Exports
1.5
2.0
1.2
1.6
-
-
Imports
-
-
-
-
0.5
-
Closing Stock
8.2
6.5
8.8
7.7
4.2
4.4
Months of Consumption
4.3
3.3
4.2
3.8
2.1
2.1
Opening Stock
Production
Growth Y-O-Y
2015
2016
( Fig. in Mln tons )
2017E
2018 P
Sector Perspectives
As per ISMA, India’s
sugar production for
the 2016-17 season is
~20.2 million tones,
down ~19.52% as
compared to 25.1
million tones produced
in previous season
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• Sugar mills in U.P. produced ~8.77 million tones of sugar in SS
2016-17 as compared to 6.8 million tones last season, owing to
better yields.
• Maharashtra mills produced ~4.20 million tones in SS 2016-17
as compared to 8.4. million tones in previous season, owing to
lower acreage.
• Sugar production in Karnataka stood ~2.05 million tons in SS
2016-17 as compared to 4.1 million tones in previous season.
As per the early reports, production during sugar season 2017-18 is expected to
increase to ~25 million tones provided there is normal rainfall
Key data on Indian Sugar Industry
2011-12
12
2012-13
2013-14
2014-15
2015-16
Acreage (000 Hectares)
5106
5279
5341
5307
5284
Sugarcane Production (lac Ton)
3538
3545
3456
3668
3369
Yield per hectares (tones)
69.3
67.1
64.7
69.1
63.7
Cane Crushed (lac tones)
2570
2506
2385
2730
2365
72.64%
70.69%
69.01%
74.43%
70.20%
26.3
25.1
24.3
28.3
25.1
10.25%
10.03%
10.23%
10.37%
10.62%
Duration (days)
137
126
125
135
117
No. of mills in operation
529
526
509
538
526
Drawal %
Production (lac tones)
Recovery %
Comparison of FRP with SAP paid by some States
13
`/Qtl. of sugarcane
FRP*
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
145.00
170.00
210.00
220.00
230.00
230.00
SAP – as announced by respective states for the normal variety of sugarcane
Uttar Pradesh
240.00
280.00
280.00
280.00
280.00
305.00
Bihar
225.00
255.00
255.00
255.00
260.00
280.00
Punjab
225.00
240.00
280.00
295.00
295.00
305.00
Haryana
226.00
271.00
295.00
305.00
305.00
315.00
* Linked to recoveries
BCML
A Leading Integrated Sugar Player In India
15
76,500
163.2
360
10
TCD Sugar Capacity
MW Cogen Saleable Capacity
KLPD Distillery Capacity
Locations
Integrated model
One of the pioneers of Integrated Business Model in India that stabilizes
revenue streams along with providing a hedge against the sugar cycle
Operational efficiencies
Latest technology implemented to achieve highest operational results and
leverage inter-plant synergies to maximize by-product utilization
Management expertize: Strong management team with years of sugar industry experience
Business Model
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Integrated operations
Maximize value accrual from
every ton of cane crushed
Greater hedge against the
sugar cycle
Intra-plant synergies
Supported by
very strong
farmer
relationships
Economic sized operations
driving cost efficiencies
Close proximity maximizes byproduct utilization
Plant Locations
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Sugarcane crushing capacity at 76,500 TCD, Distillery and
Co-generation operations of 360 KLPD and 163.20 MW
(Saleable) respectively
Gularia
Kumbhi
UNITS
Tulsipur
Balrampur
UTTAR PRADESH
Babhnan
Haidergarh
Mankapur
Rauzagaon
Akbarpur
Maizapur
BALRAMPUR
BABHNAN
TULSIPUR
HAIDERGARH
AKBARPUR
MANKAPUR
RAUZAGAON *
KUMBHI
GULARIA
MAIZAPUR
Sugar
Capacity (TCD)
Distillery
(KPLD)
COGEN POWER (MW)
SALEABLE CAPACITY
12,000
10,000
7,000
5,000
7,500
8,000
8,000
8,000
8,000
3,000
160
100
100
-
27.25
8.00
20.95
11.00
30.00
23.00
23.00
20.00
-
* During season saleable cogeneration capacity is 16 MW
Factory Locations
Update on Allied Segments
Distillery
Incineration Project Completion
Schedule:

Balrampur – Commissioned in Feb. 2016

Mankapur – Commissioned in July, 2016

Babhnan – Commissioned in Jan. 2017
Benefits of Ethanol Blending
Programme:

Improves ability to pay farmers on
time

Eco-friendly product
Cogeneration
Generates green power through
bagasse where nearly 32% of
the power produced is self
consumed and rest is exported to
state electricity grid at
predetermined tariff
Incineration Project which has
been implemented, will
compensate partly towards
exportable power as part of
bagasse is now used for
incineration process.
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The Company has completed
the process for setting
up/adoption of incineration
technology at its distilleries
to achieve zero discharge
(pollution) at a capex of ~
225 cr. This will enable the
Company to operate for
higher number of working
days in distillery. Therefore
more production of Ethanol is
anticipated from existing
capacities provided feed
stock is available
Revision in Power Tariff
• An increase of 0.49 paise per unit by UPERC was last effected in January 2015
Board of Directors
KAMAL NAYAN SARAOGI – Chairman Emeritus
MEENAKSHI SARAOGI – Chief Mentor
VIVEK SARAOGI, Managing Director
R. N. DAS (Retd. IAS) , Independent Director
DINESH K. MITTAL (Retd. IAS), Independent Director
KRISHNAVA DUTT, Independent Director
NOVEL L. LAVASA, Independent Director
SAKTI PRASAD GHOSH, Independent Director
SUMIT MAZUMDAR, Independent Director
NARESH DAYAL, Non-Executive, Non-Independent Director
DR. ARVIND KRISHNA SAXENA, Whole-time Director
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Shareholding Pattern – As on 30th June, 2017
20
Public &
Others, 21
Body
Corporate, 4
FII / FPI, 19
Promoters, 41
Fund Houses /
Insurance Cos. /
Banks 17
BCML Financial Performance
5 Year Operational Summary
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(` in Crores)
FY13
FY14
FY15
FY16
FY17
3384.03
2758.71
3093.21
2874.07
3641.00
Gross Profit
798.69
599.99
492.07
826.83
1327.75
PBDIT
462.69
239.96
141.54
457.45
894.51
Finance Costs
143.87
117.84
102.09
66.55
55.43
PBDT
318.82
122.12
39.45
390.90
839.08
Depreciation & Amortization
108.26
109.45
115.61
110.11
104.94
Profit before tax and exceptional items
210.56
12.87
(76.16)
280.79
734.14
-
-
-
173.10
-
210.56
12.87
(76.16)
107.69
734.14
48.53
9.03
(18.43)
7.43
141.86
162.03
3.64
(57.73)
100.26
592.28
Other comprehensive income (net of tax)
N.A.
N.A.
N.A.
(0.38)
(3.63)
Total comprehensive income
N.A.
N.A.
N.A.
99.88
588.65
24.43
24.48
24.50
24.50
23.50
1298.44
1193.84
1104.78
1207.02
1517.75
Revenue from Operations
Exceptional items
Pre-tax profits
Tax
Profit for the year
Equity capital
Reserves (excluding revaluation reserve)
Statement of latest quarterly Profit & Loss
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(` in Crores)
Q4 FY17
Q4 FY16
% Y-o-Y
Growth
FY17
FY16
% Y-o-Y
Growth
Revenue from operations
887.64
802.91
10.55%
3641.00
2874.07
26.68%
EBITDA
264.83
310.49
-14.71%
869.58
410.98
111.59%
EBITDA Margin (%)
29.84%
38.67%
23.88%
14.30%
Depreciation
25.17
26.24
-4.08%
104.94
110.11
-4.70%
Interest
19.49
17.03
14.45%
55.43
66.55
-16.71%
Profit Before Tax
226.03
104.28
116.75%
734.15
107.70
581.66%
Profit After Tax
196.77
97.17
102.50%
588.66
99.88
489.37%
Profit After Tax Margin (%)
22.17%
12.10%
16.17%
3.48%
8.29
3.98
24.25
4.09
Diluted EPS (`)
Segmental Overview – Sugar
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Cane Crushed (Lakh Quintals)
810.5
Sugar Recovery (%)
11.06
805.7
794.7
772.8
9.52
742.6
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
Sugar Production (Lakh Quintals)
82.2
77.2
FY 2013
84.7
FY 2013
9.77
9.83
FY 2014
FY 2015
FY 2016
10.66
FY 2017
Avg. Realization - Sugar (` per kg)
33.01
35.90
30.44
29.40
27.07
FY 2014
FY 2015
FY 2016
79.2
75.5
FY 2014
FY 2015
FY 2016
FY 2017
FY 2013
FY 2017
Segmental Overview – Distillery
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Production (KL)
77,950
67,666
FY 2013
FY 2014
69,903
70,555
FY 2015
FY 2016
Sales (KL)
74,080
72,158
FY 2017
Blended Realization - (` per BL)
74,202
69,180
66,217
FY 2013
28.00
64,749
FY 2014
FY 2015
FY 2016
FY 2017
FY 2013
32.62
FY 2014
37.40
40.41
42.55
FY 2015
FY 2016
FY 2017
Segmental Overview – Co-generation
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Power Generation (Lakh units)
8,295
7,489
7,505
FY 2013
FY 2014
Power sales (Lakh units)
5,386
5,474
6,168
5,307
FY 2015
7,469
7,537
FY 2016
FY 2017
Avg. Realization-Power (` per unit)
5,105
4.05
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2013
4.17
4.23
FY 2014
FY 2015
4.77
4.81
FY 2016
FY 2017
Going Forward
Investing in the entire ecosystem
• Working together with farmers to inculcate better agricultural practices and educating them to adopt modern
techniques
• Improving varietal balance, following stringent process and quality control procedures
Focus on creating value for all stakeholders
• Declared dividend (interim) of `3.50 (350%) for the FY 16-17 leading to a total outgo of `103.2 crore( including
dividend distribution tax of `17.5 crore)
• Successfully completed buy-back of 1 cr equity shares of `1 each at a price of `175 per share in February 2017
Strengthening the Balance Sheet
• No major capex in pipeline / Long term debt as on Mar 31, 17 stood at ` 205 crore down from ` 677 crore as on
Mar 31, 2016. Long-term Debt-Equity ratio stood at 0.13 as on March 31, 2017
• ICRA Limited has upgraded the long-term loan rating to AA and re-affirmed the short-term credit rating to A1+
• CRISIL has also assigned the long-term rating at AA and short-term rating at A1+
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Contact Us
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About Balrampur Chini Mills Limited - CIN: L15421WB1975PLC030118
Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Company comprise distillery
operations and cogeneration of power. The Company presently has ten sugar factories located in Uttar Pradesh (India) having an aggregate
sugarcane crushing capacity of 76,500 TCD, distillery and co-generation operations of 360 KLPD and 163.2 MW (Saleable) respectively.
BCML is one of the most efficient integrated sugar producers in the country. The Company has grown its capacity by well-planned capacity expansion
projects and the acquisition of existing companies over recent years.
For more information on the Company, please log on to www.chini.com.
For further information contact:
Pramod Patwari
Anoop Poojari / Karl Kolah
Chief Financial Officer
CDR India
Balrampur Chini Mills Limited
Tel: +91 22 6645 1211 / 1220
Tel : +91 33 2287 4749
Fax: +91 22 6645 1213
Fax: +91 33 2289 2633
Email: [email protected] /
Email: [email protected]
[email protected]
Registered Office: FMC Fortuna, 2nd Floor, 234/3A, A. J. C. Bose Road, Kolkata 700020.
Thank You