### **Overview** Suraj Industries Limited (SIL), incorporated in 1992, has evolved from a traditional edible oils and commodities trader into a focused player in India’s alcoholic beverages (Alcobev) industry. Following a strategic shift initiated in 2021, the company has progressively exited its legacy trading business—fully discontinuing edible oil operations as of April 1, 2025—and is now wholly concentrated on expanding its footprint in the liquor sector through organic growth, backward integration, and strategic investments. --- ### **Core Business Segments** As of November 2025, Suraj Industries operates exclusively in the **alcoholic beverages** space, with two primary streams: 1. **Contract Manufacturing of Rajasthan Made Liquor (RML)** - Bottles RML for **Rajasthan State Ganganagar Sugar Mills Limited (RSGSM)**, a Government of Rajasthan entity with exclusive wholesale rights for country liquor and RML in the state. - A fully automated bottling line was commissioned at RSGSM’s Mandore (Jodhpur) facility in May 2024, enhancing capacity, efficiency, and consistency. 2. **Proprietary Brand Operations** - Produces and markets **country liquor under its own brand**, enabling direct consumer reach, brand equity development, and controlled production standards. --- ### **Strategic Subsidiaries & Investments** #### **1. Carya Chemicals & Fertilizers Private Limited (Carya)** - **Ownership**: 85.75% equity stake (increased from earlier stakes). - **Key Developments**: - Acquired in FY 2022–23 to strengthen presence in the liquor value chain. - Operates a **commercial bottling plant in Baran, Rajasthan** (since April 2025) for Indian Made Foreign Liquor (IMFL) and Country Liquor. - Has a **manufacturing agreement with Allied Blenders & Distillers Ltd** to bottle their brands. - Secured license in May 2024 for a **125 kiloliters/day grain-based distillery** for Extra Neutral Alcohol (ENA) and ethanol on 90 acres of land allotted by RIICO in Baran. - Environmental clearances and statutory approvals in place; distillery under advanced construction. - **Strategic Importance**: - Will enable **backward integration** by in-house production of ENA, a critical raw material for RML and IMFL. - Project co-financed via equity infusions, unsecured loans from SIL, and bank funding. #### **2. Shri Gang Industries & Allied Products Limited** - **Ownership**: 20% stake. - **Operations**: - Operates a bottling plant in **Hardoi, Uttar Pradesh**. - Advanced stage of commissioning for a **grain-based ENA distillery**. - Partners with **United Spirits Limited**, enhancing operational credibility and scale. - **Impact**: - Expands SIL’s geographical reach into UP, a high-potential market. - Reinforces supply chain resilience and future expansion plans. --- ### **Expansion & Diversification Plans (Announced: Sep–Oct 2025)** To support internal packaging needs and tap into rising demand, SIL is setting up two new manufacturing facilities at the **RIICO Industrial Area, Guwadi & Majhari, Rajasthan (Plot No. SP 1-2)**, leased from Carya for 15 years effective September 6, 2025. #### **1. Corrugated Boxes Manufacturing Unit** - **Capacity**: 75 metric tons per month (3-ply & 5-ply boxes). - **Project Cost**: ₹416.83 lakh. - **Target Market**: - Internal demand from SIL and Carya. - External supply to liquor industry, focusing on **eco-friendly packaging solutions**. - **Key Machinery** (supplied by Neelkanth Machinery Company): - 52’ Corrugation Machine - Sheet Cutter, Sheet Pasting Machine - Rotary Trimming & Creasing Machine - Double Colour Printed Slotter-Chain Feed Machine #### **2. PET Bottle Manufacturing Unit** - **Focus**: Exclusive production of **180 ml bottles** for the liquor industry. - **Capacity**: ~200,000 bottles per day. - **Project Cost**: ₹1,082.53 lakh. - **Machinery** (supplied by ASB International Pvt Ltd): - ASB-70DPW v4 SERVO Machine - 24-Cavity Mold #### **Timeline** - **Commissioning Target**: June 30, 2026. - **Rationale**: - Supports **backward integration** by reducing dependency on third-party packaging suppliers. - Addresses growing demand for standardized, cost-effective, and sustainable packaging in Rajasthan’s expanding liquor market. --- ### **Strategic Focus & Growth Drivers** - **Market Positioning**: Transitioned from a commodity trader to a vertically integrated Alcobev player. - **Growth Levers**: - In-house production of core inputs (ENA, packaging). - Expansion of contract manufacturing and proprietary brands. - Leveraging partnerships with government and private sector leaders (RSGSM, United Spirits). - Geographic diversification via subsidiaries in Rajasthan and Uttar Pradesh. - **Management Leadership**: - **Mr. Ritesh Gupta, Joint MD**, brings over 15 years of experience in the liquor industry and an MBA background. - Key architect of growth at **VRV Foods Ltd. (Himachal Pradesh)**; leads project execution at Carya. --- ### **Financial & Operational Trends** - **Revenue Shift**: - FY 2021–22: 68% from edible oils, 30% from liquor. - FY 2023–24: Liquor revenue grew to ₹971.91 lakhs (~21% of total), while trading declined to ₹3,725.31 lakhs—indicating accelerating shift toward Alcobev. - **Post-April 2025**: 100% revenue expected from liquor operations. - **Capacity Utilization**: - Ajmer bottling plant: 30.03% utilized as of Dec 2023; new investments aimed at scaling output.