DWARIKESH SUGAR IND Share price

History & Background of the CompanyThe Company was originally incorporated as Dwarka Sugar Limited videcertificate of incorporation no. 11-74815 dated November 1st 1993 withRegistrar of Companies Maharashtra at Mumbai and received theCertificate for commencement of business on November 24th 1993. Thename of the Company has been changed to Dwarikesh Sugar IndustriesLimited on April 18th 1994. The registered Office of the Company hasbeen changed from the State of Maharashtra to the State of UPconfirmed by an Order of Company Law Board (Western Region) BenchMumbai dated June 23rd 1995. In this regard Dwarikesh has receivedCertificate of Registration bearing no. 20-18642 dated August 31st 1995from Registrar of Companies UP at Kanpur.The Company has been promoted by Mr. Gautam R Morarka with the mainobject of carrying on the activity of production of sugar and sugarrelated activities. The Company commenced its commercial production onDecember 5 1995 by setting up a 2500 TCD Sugar plant in the sugar richbelt of Uttar Pradesh at Bundki village in Bijnor District. The Companyhas been raising its crushing capacity regularly and the same has sincebeen increased to 6500 TCD. The Company produced 3.83 lacs quintals ofsugar during 1995-96 with a recovery of 9.95% which has beencontinuously increasing and it achieved a production of 7.81 lacsquintals with a recovery of 10.39% during FY 2003-04.The sugar industry is stuck with regulations on the pricing of sugarcane. Due to this the manufacturers do not have any control over themajor cost component of sugar. They can achieve better profitabilityeither by controlling other cost components like power labour etc. andbetter efficiency in the production. Dwarikesh has 9 MW Power plantwhich takes care of its requirement of Power and excess Power issupplied to the UP state power grid. On the production efficiencyfront the Company has been consistently achieving higher recoverypercentage as detailed below:Region Average Sugar Recovery (Seasons-wise) 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97East UP 9.53 9.36 9.61 9.36 8.73 9.33 9.02 West UP 9.79 9.88 10.15 9.60 9.38 9.89 9.67 Central UP 9.29 9.34 9.42 9.13 8.92 9.47 9.33 Uttar Pradesh 9.53 9.53 9.73 9.34 9.04 9.59 9.36 All India 10.36 10.27 10.48 10.20 9.87 9.95 9.90 Dwarikesh 10.20 10.21 10.32 9.90 9.61 10.28 10.26 Region Average Sugar Recovery (Seasons-wise) 1995-96East UP 8.42West UP 8.92Central UP 8.72Uttar Pradesh 8.71All India 9.42Dwarikesh 9.95(Source: ISMA - Indian Sugar Mills Association)Due to better cost management and higher sugar recoveries the Companyhas been able to maintain a sustainable growth. The Company's totalturnover has grown from Rs. 2383.48 lacs in FY 1996 to Rs. 14309.75lacs in FY 2004 and its Net profit grew from Rs. 44.7 lacs in FY 1996to Rs. 976.06 lacs in FY 2004. As on September 30 2004 the net worthof the Company was Rs. 3787.80 lacs.During the current fiscal the Company has started implementing theExpansion of Co-gen power plant capacity from 9 MW to 17 MW and settingup of 30 KLPD distillery for manufacture of Industrial Alcohol(Ethanol).Major events in the history of the Company is given below:Year * Event 1993 * Incorporation of the Company in the name of Dwarka Sugar Limited1994 * Change of name to Dwarikesh Sugar Industries Limited1995 * Setting up of 2500 TCD sugar plant * Commencement of Commercial production 1996 * Expansion of capacity to 3500 TCD * Setting up of 6 MW Power Plant 1997 * Payment of maiden Dividend of 10% 1999 * Expansion of capacity to 4000 TCD2001 * Expansion of capacity to 5000 TCD * Bought back 25.20 Lac shares at Rs.40 per share2002 * Expansion of co-gen from 6 MW to 9 MW. * Expansion of capacity to 6500 TCD2003 * Sold Power worth Rs.183 Lacs to UP State Grid2004 * Commencement of implementation of following projects: a. Expansion of Co-gen power plant from 9 MW to 17 MW b. Setting up of 30 KLPD distillery for manufacture of Industrial Alcohol.