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Project at a Glance

Organisation Structure

Location

Contacts

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Company Info.

Promoters & Management

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Project Consultants

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Project Financer

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Renewable Energy Policy

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Methodology

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Development Policy

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Product

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Carbon Credits

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Press Release

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News & Events

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	Inauguration
	Inaugural Function held on Wednesday 2nd December 2009 by the hand of ...
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	Bhumi Pujan
	Bhoomipujan Programme held on 27th May 2008 by the hand of ...
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	Ajit Dada Pawar
	Water Resources Minister visit at Gangakhed Sugar & Energy Pvt. Ltd. on 11 April 2009. ...
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SUGARCANE Availability

Sugarcane is the main raw material. The requirement of sugarcane is as follows:

Raw Material	Quantity (lakh tons)	Source	Distance	Mode of Transportation
Sugarcane	9.18	Nearby farms	Up to 50 kms	By Cart, Tractors and Trucks

The efficiency of a sugar mill is mainly dependent on the adequate availability of good quality cane. Past data in respect of area under sugarcane cultivation in the region, has been obtained from the Regional Joint Director of Sugar, Govt. of Maharashtra (GoM) for Aurangabad & Nanded regions. The data for SS 2007-08 sugar cane production in radius of 50 kms is as follows:

Sr. No.	Distric	Existing Area Under (In Hectares)	Production of Sugar Cane (In Lac M.T)
1	Parbhani	14900	8.94
2	Nanded	13700	8.20
3	Beed	23000	12.80
4	Latur	6500	3.90
5	Hingoli	8000	4.80
6	Jalna	3000	1.80
TOTAL		69100	40.44

Cane Availability Matrix

Distance	Production	% of Cane Requirement
0 To 20	1.70	19 %
21 To 30	4.42	49 %
31 To 40	11.60	127 %
41 To 50	22.72	250 %
	40.44	445.00 %

The total cane produced during SS 2006-07 in the above districts were 66 lac MT, reduced to 40 lac MT in SS 2007-08, due to lack of consumption by sugar units in the vicinity.

This is an opportunity to the project in terms of availability of adequate sugar cane which is key to the feasibility of the project. Since 100% of the raw material is sourced from less than 50 kms radius, large savings in envisaged due to:

Transportation costs.
Crushing within 12 hours of cutting, resulting in better recovery.

Large sugar projects fail due to non-availability of adequate sugar cane and also due to transportation of sugar cane from more than 50 kms resulting into large inefficiencies. Besides this the project has the following competitive advantage over other sugar units:

i. The company being a 6000 TCD unit would procure the sugarcane in bulk as compared to other units in the region which are small sized in the range of 1250-2500 TCD. This would facilitate the farmers/growers as they would be selling the produce at once.

ii. The company being a private player would offer better rates and
terms compared to other units which are majorly co-operatives and
many of them are sick units and are not in a position to offer good
rates.

iii. The company is undertaking cane development program, for which
they have already appointed a Cane Development Team.

Cane Development Policy & Availability

i. The company will be conducting awareness through seminars.
ii. Plot to Plot visits.
iii. Holding discussion with cultivators.
iv. Imparting technical know how to cultivators by guiding and educating them with the advance techniques of cane cultivations.
v. Providing good irrigation facilities (in the region two hydro barrages for better irrigation have been announced by irrigation dept. on the Godavari river at Loni district Parbhani and Shivangaon dist. Jalna)
vi. Finance arrangement to cultivators from various banks with tri-party agreements between factory, cane growers and bank.

Advantages to company:
i. Result in committed sugarcane availability
ii. Better planning for harvesting and transportation and hence improved recovery.

Advantages to farmers:
i. Since the company is a private player payments to farmers would be prompt and rates offered would be higher than the neighbouring sugar units (almost 90% of the units are co-operative and many are sick). Hence the project site is one of the best for the proposed project. Further, the company is also proposing to implement drip irrigation programme in association with Netafim India Ltd., a unit of Netafim, a leading Israel based player in drip irrigation technology to improve the yield of sugarcane and sugar recovery.
The details of the sugarcane price since FY 2006 is as under :

	Unit	H2 FY07	H2 FY06	2006-07	2005-06
Statutory Minimum Price (SMP) for 9% recovery	Rs. Per ton	811	795	803	795

It may be mentioned that the sugarcane price has been assumed at Rs.1250 per ton (all-in costs at factory gate including cost of harvesting and transportation) even though the current prevailing price in the region is in the range of Rs.900 (all in cost)per ton. Therefore the project is sensitized, by more than 30% on raw material prices, which offers great comfort for changing price scenario. However the price of cane has not moved beyond Rs. 900 in the past so many years.

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