DCM Shriram Industries is, at its core, a single-site sugar factory that has been deliberately engineered into an integrated bio-energy complex. The company was radically simplified in FY26 when a family succession plan split the old conglomerate into three separate listed entities, leaving the original company with just the Daurala Sugar Works in Uttar Pradesh. The recurring approach is to squeeze every possible rupee from a stick of sugarcane - first by making refined sugar, then by fermenting the leftover molasses into alcohol and country liquor, and finally by burning the fibrous waste to generate power, all on the same site. # Business segments One integrated complex, three interlocking revenue streams - sugar, alcohol, and power - all flowing from the same sugarcane crushed at Daurala. ## 1. Sugar: the anchor that pulls in the raw material **The sugar mill is the gravitational centre of the entire operation, because crushing cane is what brings the raw material onto the site that every other business feeds on.** - **Cane is the choke point** - the factory crushed 203 lakh quintals of sugarcane in FY26, and the company’s primary strategic priority is expanding cane acreage and yield through farmer engagement, because the entire complex runs on what the mill can pull in. - **Shifted to premium refining** - the mill moved from an older Double Sulphitation process to Defco Remelt Phosphatation (DRP), which produces sugar of international standards, allowing it to sell 41% of its sugar into higher-value institutional and premium markets rather than just the open market. - **A regulated floor, but not a ceiling** - the government sets a Minimum Support Price of Rs. 3,100 per quintal for sugar and controls monthly sales quotas, but the company chases better realisations through refined exports when policy permits, having exported roughly 45% of production in FY22 without any subsidy. ## 2. Alcohol and ethanol: the value upgrade on waste **Molasses, a by-product of sugar-making, is not sold off cheaply - it is fermented in-house into ethanol for fuel blending and country liquor for the local market, capturing the margin that would otherwise go to a middleman.** - **Ethanol is a policy-driven growth lane** - the distillery’s ethanol capacity was expanded to 155 kilolitres per day, and the government’s push to hit 20% ethanol blending in petrol (with a target of 30% by 2030) creates a structural demand pull for what was once a waste stream. - **Switches recipes with the market** - the plant can shift between C-heavy and B-heavy crushing routes, meaning it can decide in any season whether to maximise sugar output or divert more cane juice towards ethanol, depending on which is more profitable. - **Country liquor turns a liability into an asset** - around 60% of the levy molasses that the mill is obliged to sell to the state at a low price is instead bottled in-house as country liquor, a value-added product that earns far more than selling raw molasses. ## 3. Co-generation of power: the tail that wags the cost structure **The fibrous bagasse left after crushing cane is burned to generate electricity and steam, making the entire complex self-sufficient in energy and turning a disposal problem into a revenue stream.** - **Zero coal, zero fuel cost** - the manufacturing facilities are powered entirely by agrofuels, having fully eliminated coal, and a bagasse-saving project has made the plant self-sufficient in its own fuel. - **Surplus power is sold to the grid** - the plant exports excess electricity and earns income from Renewable Energy Certificates, with power tariffs revised upwards by roughly Rs. 0.90 per unit from April 2024, with annual increases for the next four years. - **Keeps the distillery running through the monsoon** - a Concentration and Incineration Plant allows the distillery to operate for 350 days a year, even during the July-September shutdown that used to be forced by effluent disposal constraints, while generating additional power and achieving Zero Liquid Discharge. # Group structure and partners **The company is the sugar-and-energy remnant of a family succession plan that split one conglomerate into three independently controlled listed entities, each run by a different branch of the founding family.** - **A clean break, not a spin-off** - the Composite Scheme of Arrangement, effective December 2025, demerged the Chemical and Rayon businesses into two new listed companies, DCM Shriram Fine Chemicals Limited and DCM Shriram International Limited, leaving the original company with the sugar business undertaking including its power and alcohol business. - **One share in each for every share held** - shareholders received one share in each of the two new companies for every share they held in DCM Shriram Industries, and both new stocks began trading on BSE and NSE in February 2026. - **No subsidiaries left** - the demerger cancelled all pre-scheme subsidiaries, and as of March 2026 the company had no subsidiaries, making it a pure-play sugar and bio-energy operation. - **A continuing supply relationship** - the demerged chemical entity now sits next door under common control, and Daurala Sugar Works supplies it with power and steam at the same rates charged by the grid, creating an arm’s-length customer for the complex’s surplus energy.