DHAMPUR SUGAR MILLS Share price

The Dhampur Sugar Mills Limited was incorporated on May 221933 as a Limited company under the Indian Companies ActVII of 1913 registered with the Deputy Registrar of JointStock Companies United Provinces of Agra and Oudh andcommenced business in the same year.The Company was promoted by Lala Ram Narain Lala RamBharosey and Lala Ram Swaroop ancestors of the presentpromoter Directors Mr Vijay Kumar Goel and Mr Ashok KumarGoel.PRESENT BUSINESS OF THE COMPANYThe company initially commenced operations with a capacityof 300 TCD in 1933. It has grown over the past 60 yearsin the face of political economic and technological changeinto a "Sugar Cane" Complex rather than a sugar companywith a crushing capacity of 15000 TCD and a diverseproduct range that includes sugar paper chemicals andpower.Business PhilosophyDhampur Sugar Mills has based its business on the followingcornerstones:I. Mastering TechnologyDhampur Sugar Mills designs its own sugar plants and muchof the machinery is fabricated in house. This command overproduction equipment is relevant as sugar is a capitalintensive industry and reduction its capital costs isextremely important.2. InnovationDhampur Sugar Mills has been involved in continuous researchand has pioneered over the last 12 years the followingdevelopments yielding the associated benefits.Innovation BenefitFlbrizor Improved Cane ConditioningTooth Roller Pressure Feeder Improved crushing with a better yieldGrooved Roller Pressure Feeder Energy conservation and improved productivity Five Seven and light Roller Improved capacity to become Mill System the largest single tandem mill in India.Falling Film Evaporator Energy conservation in sugar purification Rising Film Evaporator Energy conservation in Sugar Crystalisation Distillation of Alcohol by a Reduced energy consumption pressure vacuum systemDevelopment of Encillium For production of immobilised Technology yeastDevelopment of a Tissue Culture Development of Laboratory new seeds and an increased sugarcane seasonBesides above the company absorbed and adopted variousnational and international technologies in its sugar paperand chemical units. Apart from the above technologicalachievements the company has developed a Tissue CultureLaboratory. The company has concentrated on thedevelopment of new varieties of cane (late and earlymaturing types) that would aid it in extending the crushingseason. The first transfer of cane developed in thislaboratory on a commercial scale will be in the 1995-96crushing season when 7000 acres are planted from the growthover 700 acres sown with laboratory grown shoots which wereplanted in 1994-95. By 1996-97 the company hopes to extendthe crushing season from 180 days to 210 days.3. Expansion and ModernisationThe company has continuously invested in capital assetsbuilding up a Gross Block of Rs.147.96 crores as on 30thSeptember 1994 as against a Gross Block of Rs.55.37 croresas on March 31 1990.During the past five years the company has created thefollowing capacities.Particulars Installed capacity as on Unit 31/3/90 31/3/95Sugarcane Crushing TCD 7500 15000Paper and Cardboard TPA 12000 12000Particle Board Cu/Mt./Annum Nil 10200Chemicals Nil 7300Apart from expansion funds have been invested inmodernising older capacities and its subsidiaries.4. Value AdditionOne ton of cane can yield the following products : Onehundred kg. of Sugar Forty kg. of Molasses and One hundredkg. of Bagasse.The Bagasse can be burnt to produce steam used in thesugar production process and to generate power. Bagassecan also be used to make paper or particle board (a timbersubstitute).Molasses can be used to make alcohol that may be furtherconverted to Acetic Acid or a variety of other chemicals.Dhampur Sugar Mills is being a large volume sugar millbased on a single milling. tandem crushing system andproduces a high volume of bi-products. To fruitfully usethe bi-products produced Dhampur Sugar Mills hasestablished production capacity for surplus power paperparticle board and chemicals.The Value Addition process at Dhampur is described in thechart below: Sugar Cane Sugar Bagasse Molassses Paper Particle Board Power Alcohol Fine Chemicals5. Energy ConservationThe company has put its sustained efforts towards theconservation of energy and as a recognition for efforts theDhampur Sugar Mills has been awarded the NationalEfficiency Award for achieving the lowest Steam Consumptionin the Sugar Industry in India.6. A Partnership with the farmerDhampur Sugar Mills believes that its prosperity is linkedto the prosperity of farmers who supply it cane. DhampurSugar Mills'' efforts have been to build a franchise amongthese farmers by aiding them with cultivation techniquescaste varieties and seeds. Efforts at sustaining Caneprocurement and improving the cane quality will be a thrustarea of the Company.