Dwarikesh Sugar Industries is an integrated bio-energy company built on sugarcane - it crushes cane to make sugar, ferments the molasses into ethanol, and burns the leftover fibre to generate power, so nothing leaves the factory gate as waste. Founded in 1993 by G. R. Morarka with a single 2,500-tonnes-per-day mill in Uttar Pradesh, it has grown over three decades into a three-plant operation that now tilts deliberately toward energy, investing more in ethanol capacity than in sugar because ethanol offers higher margins and a government-guaranteed buyer. The recurring logic is circular - every by-product becomes fuel for the next process, and the company’s own cane-development engine, reaching nearly 1.54 lakh farmers, feeds all three manufacturing businesses from the same fields. # Business segments Three engines fed by one cane supply chain - a sugar business that provides the raw material, an ethanol business that turns molasses into fuel sold to oil companies, and a power business that burns bagasse to light the plants and sell surplus electricity to the grid. ## 1. Sugar: the anchor that feeds everything else **Three fully automated mills crush 21,500 tonnes of cane a day into premium white sugar, generating the molasses and bagasse that fuel the other two businesses.** - **Cane comes from a tight radius** - all three mills sit in Uttar Pradesh’s Bijnor and Bareilly districts, drawing cane from fields 21-25 km away, which keeps transport costs low and cut-to-crush time down by 40% over the decade. - **Quality earns a premium** - the company produces sugar with ICUMSA levels below 100 (a measure of whiteness; lower is purer) and consistently retains 85% or more of its sugar against a regulatory minimum of 70%, so its crystals command a market premium over standard grades. - **Recovery keeps costs down** - it reports among the highest sugar recoveries in Uttar Pradesh and one of the lowest chemical consumption rates, which together make it one of the state’s lowest-cost producers. - **Automation reduces downtime** - all plants are fully automated, utilising a distributed control system that monitors operations in real time, keeping equipment downtime below 2%, among the lowest in the sector. ## 2. Distillery: the growth engine built on molasses **Two distilleries with a combined 337.5 thousand litres per day of capacity turn molasses and cane syrup into ethanol sold to government oil companies under India’s blending programme - a high-margin business with no inventory pile-up.** - **Feedstock flexibility is the moat** - the distilleries can switch between B-heavy molasses and sugarcane juice or syrup depending on the season and government policy; in FY26, all ethanol came from B-heavy molasses, while the previous year cane juice was diverted to ethanol, sacrificing sugar output. - **Bought, not stored** - ethanol is manufactured year-round and sold immediately to Oil Marketing Companies, so the company works with virtually no ethanol inventory, making the business lighter on working capital than sugar. - **The second distillery was built in nine months** - the 175-KLPD plant at Dwarikesh Dham was commissioned in June 2022 at a cost of ₹232 crore, using Zero Liquid Discharge technology that recycles 3.94 kilolitres of water for every litre of ethanol produced. - **Offtake risk is real** - ethanol volumes sold to OMCs fell roughly 8% year-on-year in FY26, and reduced cane crushing constrained molasses availability, leaving distillery capacity under-utilised. ## 3. Cogeneration: the circular-economy tail that pays **Bagasse - the dry fibre left after crushing cane - is burned to generate 94 MW of power, enough to run all three plants with roughly 54 MW of surplus sold to the state grid under a long-term contract.** - **Fuel is free** - the bagasse comes from the company’s own sugar mills, so the raw material for power generation costs nothing beyond the cane already paid for. - **One buyer, steady price** - surplus power is sold exclusively to Uttar Pradesh Power Corporation Limited under a long-term Power Purchase Agreement; in FY26, 88 million units were exported at an average of ₹4.4 per unit, boosted by a retrospective tariff revision. - **Integrated control** - the cogeneration plants are wired into the same SCADA system that runs the sugar mills, so power generation is monitored and adjusted in lockstep with crushing operations. # Cane development: the supply chain that feeds all three engines **A dedicated farmer-engagement operation spanning 0.92 lakh hectares and nearly 1.54 lakh farmers ensures the mills get quality cane on time - and farmers get paid within two weeks.** - **Proximity is engineered** - command areas are situated approximately 25 km from each factory, and 50-70% of cane is delivered to the mill gate by farmers’ own tractor trolleys, with the company arranging pickup for the rest from village collection centres. - **Agronomy as a service** - the cane development department runs demonstration plots, promotes high-yield seed varieties, provides fertilizer subsidies, and operates a soil-testing lab and a bio-pesticides facility that develops crop-protection agents. - **Digital reach** - the e-Kisan app gives roughly 1.33 lakh farmers real-time access to indent collection, payment status, disease tracking, and loan positions, while satellite imagery is used to survey command areas accurately. - **Variety replacement is underway** - the company was first in Uttar Pradesh to deploy the high-yielding CO 0238 cane variety and is now accelerating its replacement with resistant strains like CO 0118 and CoJ 85 as red rot disease erodes yields. # Group structure and partners **A single listed entity with no subsidiaries or joint ventures - the three manufacturing units all sit inside Dwarikesh Sugar Industries Ltd.** - The company is listed on the NSE and BSE, with promoters holding 42.09% of equity as of March 2024. - It has no subsidiaries, associate companies, or joint ventures - all operations are housed in one legal entity. - It carries a long-term credit rating of AA- from ICRA and a short-term rating of A1+ for its ₹300 crore Commercial Paper programme. - A buyback of 30 lakh equity shares at ₹105 per share was completed in March-April 2024, reducing the paid-up share count to 18.53 crore shares.