### **Overview** Dwarikesh Sugar Industries Ltd., founded in 1993 by G. R. Morarka, has evolved from a traditional sugar manufacturer into a fully integrated, sustainable bioenergy enterprise. With three fully automated sugar mills located in the sugarcane-rich districts of **Bijnor and Bareilly, Uttar Pradesh**, the company operates at the forefront of India’s sugar and renewable energy sectors. It is recognized as one of the most efficient, low-cost producers with a strong emphasis on **operational excellence, farmer engagement, and vertical integration**. As of FY25 (2023–24), the company has a combined **sugarcane crushing capacity of 21,500 tons per day (TCD)**—a level maintained since 2007—while significantly expanding its non-sugar revenue streams, particularly in **ethanol and co-generated power**, in alignment with India’s National Bioenergy Programme. --- ### **Core Business & Product Portfolio** Dwarikesh Sugar Industries operates under a **multi-product integrated model**, extracting maximum value from every ton of sugarcane. Its key products include: - **Sugar** (premium-quality, <100 ICUMSA) - **Ethanol** (supplied to Oil Marketing Companies for blending) - **Industrial Alcohol** - **Molasses** (sold to local distilleries for country liquor) - **Bagasse-based Cogeneration Power** (96 MW total capacity) - **Liquid Carbon Dioxide** - **Press Mud** (used as organic manure) The company distributes sugar through agents and e-commerce platforms across India and exports sugar internationally under export schemes like MAEQ. Ethanol is supplied to government OMCs, supporting national energy independence goals. --- ### **Strategic Transformation: From Sugar to Bioenergy** Since December 2019, Dwarikesh has executed a deliberate pivot toward **bioenergy and ethanol production**, driven by favorable policy tailwinds, including the **National Biofuel Policy (2018)** and the government’s target of **20% ethanol blending by 2025**. **Distillery Expansion:** - Ethanol capacity has surged from **30 KLPD in 2005 to 337.5 KLPD in 2025**, a more than 10x increase over two decades. - A **175 KLPD distillery was commissioned at Dwarikesh Dham (Bareilly) in FY23**, achieving **peak utilization within 11 days**, reinforcing operational agility. - The new unit uses sugarcane juice/syrup during crushing season and **B Heavy molasses or grain during off-season**, ensuring year-round production. **Impact of Shift:** - Ethanol is now the **primary growth engine**, projected to contribute **over 30% of total revenue** at full capacity (up from 17% in 2021–22). - This transition reduces exposure to the **cyclicality of sugar markets**, improves cash flow (ethanol sold immediately vs. sugar over 12–15 months), and enhances return on capital employed (ROCE). - Working capital intensity has declined, supporting a **leaner balance sheet** and improved financial sustainability. --- ### **Operational Excellence & Efficiency** Dwarikesh's competitive edge stems from: - **High Sugar Recovery Rates:** Achieved **12.41% in 2019–20**, among the highest in the industry. - **Plant Efficiency & Automation:** Full automation across all units, **e-Kisan app for farmer engagement**, real-time monitoring, and tractor-mounted cane loading. - **Energy Optimization:** Use of: - **Harmonics studies and specialty capacitors** for efficient power usage. - **Cigar (Condensate Heat Recovery System)** at DP unit to reuse waste heat, reducing steam demand. - **Multi-chambered, automated horizontal systems** that save space, power, and maintenance. - **Integrated Infrastructure:** All plants, offices, and control centers linked via **reliable broadband, ISDN, and VSAT networks** for 24/7 operational support. The company also owns a **dedicated fleet of trucks** and uses **drones, GPS, and satellite imagery** for precise cane procurement and yield monitoring. --- ### **Farmer Engagement & Cane Security** Building resilient farmer relationships is central to Dwarikesh’s strategy: - **Network of ~145,000–154,000 farmers** across a 25 km radius of its plants. - **Weekly payments** for cane supply, even during the pandemic, fostering trust. - **E-Kisan App**: A digital one-stop platform for issue resolution, inventory tracking, and transparent communication. - **Cane Development Initiatives:** - Subsidized seeds, nutrients, and technical field visits. - Disease monitoring and support for early-maturing, high-quality cane varieties. Historically, Dwarikesh pioneered the **CO 0238 variety** in Uttar Pradesh—a high-yield, early-maturing cane that boosted farm income and sugar recovery. However, due to rising vulnerability to **red rot disease**, the company has phased it out. Despite temporary declines in yield during the transition, management believes **“the worst is behind”** and expects multi-year growth stabilization by the **2026–27 sugar season** through new, disease-resistant cane varieties developed via focused R&D. --- ### **Financial & Production Performance (FY23–24)** - **Sugar Revenue:** Contributed **72% of total revenue**, with **21.99% YoY growth**. - **Sugar Production:** **35.22 lakh quintals** (down from 38.21 MMTP in 2022–23 due to adverse weather and disease). - **Cane Crushing:** **268 lakh quintals** in 2023–24 (down from 401 lakh quintals in 2022–23). - **Cane Procurement:** **36.65 lakh tonnes** sourced from command areas within 25 km—ensuring **low logistics costs**. - **Power Generation:** Total **96 MW**; surplus sold to **UPPCL under long-term PPA**. - **Debt Profile (as of Mar 2023):** 100% long-term debt was **concessional**, and working capital debt was only **23.77%** of total debt—indicating strong financial discipline. Operations in 2023–24 ended early (March 11–30) due to supply constraints, underscoring the critical need for **cane base diversification and yield improvement**. --- ### **Sustainability & Integration Model** Dwarikesh exemplifies **responsible industrial agriculture**: - **Zero waste philosophy:** By-products fully utilized—bagasse for power, molasses for ethanol, press mud as manure. - **Reduced carbon footprint:** Co-generation displaces fossil fuel-based power; ethanol reduces petrol imports. - **Full integration:** No need to buy/sell intermediate inputs due to **balanced capacity alignment** between sugar, ethanol, and power units. - **Off-season ethanol production** ensures asset utilization year-round. It is one of the **few fully integrated sugar companies in India**, combining sugar, ethanol, and power under one seamless operational model.