Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains!

Some of the interesting facts is identifying on Uttam Sugar:

ACQUISITION:
The company proposed acquiring a majority stake of 58.33% in Uttam Distilleries Limited (UDL) which operates 40 KLPD grain-based distillery, for around Rs.35 crores. Rs. 13.10 crores were invested in FY24 and the remaining Rs.21.90 crores will be infused in FY25 from internal accrual. The acquisition will be concluded by October 2024 and UDL became a subsidiary later…

Brownfield expansion:
Khailkheri Unit existing capacity 4700 TCD
Utilization 100%
Proposed addition 800 TCD

With an excellent location, one of the highest capacity utilization, scope for further expansion, full steam saving technology, expansion in distillery capacity, one of the most significant branded sugar players, diversification in high margin pharma sugar,65% of production comes from high margin refined sugar.