Shree Renuka Sugars Limited: History, Latest Updates, Milestones, Subsidiaries and Share Price
INTRODUCTION
Shree Renuka Sugars Limited is an Indian agri-business and bio-energy company, is actively engaged in several sectors. These include sugar production, as well as the production of ethanol and ethyl alcohol. Additionally, the company is involved in the generation and sale of power, highlighting its diversified operations within the agri-business and bio-energy industries.
The company's diverse operations encompass segments such as Sugar Milling, Sugar Refining, Distillery, Co-Generation, Trading, Engineering, and other related activities. The Company’s product portfolio comprises sugar, ethanol, power, and organic manure. The Sugar segment is involved in the production of white sugar, molasses, and bagasse. The Trading segment deals with the trading of white and raw sugar, coal, molasses, and MG alcohol. The Co-Generation segment is responsible for producing electricity, steam, coal ash, and bagasse ash. The Other segment encompasses bio-compost and press mud.
Shree Renuka Sugars Limited operates approximately 11 mills, including seven in South and West India and four in Centre-South Brazil. These mills feature integrated ethanol and power co-generation capacities, emphasizing the company’s commitment to sustainable energy and resource utilization.
Shree Renuka Sugars Limited moves in 2024:
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The PE ratio of -19.64 suggests undervaluation, affecting the Renuka Sugar share price.
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The current Renuka Sugar share price is Rs 51.63.
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Return on Assets (ROA) of -1.86% indicates inefficiency in asset use, negatively impacting the Renuka Sugar share price.
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A current ratio of 0.75 suggests liquidity issues, which might affect the stability of the Renuka Sugar share price.
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Renuka Sugar's ROE of 0% shows no profit from equity, which may negatively impact the Renuka Sugar share price.
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The debt-to-equity ratio of -7.43 indicates low debt reliance, potentially stabilizing the Renuka Sugar share price.
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Sales growth of 40.03% is positive and may boost the Renuka Sugar share price if sustained.
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An operating margin of 5.36% shows moderate efficiency, influencing the Renuka Sugar share price.
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A 0% dividend yield means no dividends, potentially making the Renuka Sugar share price less attractive to dividend-focused investors.
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An EPS of Rs -2.63 indicates a lack of profitability, possibly leading to a decline in the Renuka Sugar share price.
Evolution of Shree Renuka Sugars Limited: From Past to Present:
Past:
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Shree Renuka Sugars Limited (SRSL), incorporated on 25th October 1995, grew rapidly in the sugar, power, and ethanol sectors. By 2000, it had established key facilities in Karnataka and Maharashtra, including an 11.2 MW cogeneration plant and a 250 TPD sugar refinery. Expansion continued with the formation of Renuka Commodities in Dubai in 2004 and an IPO in 2005. Key acquisitions included Brazilian sugar firms Renuka Vale do Ivai and Renuka do Brasil in 2010. Shree Renuka Sugars Limited (SRSL) expanded its operations by establishing subsidiaries in Mauritius and acquiring Gokak Sugars. These strategic moves bolstered SRSL's capabilities in power generation and refining, contributing significantly to its overall growth and market presence. The company divested stakes in several subsidiaries from 2013 to 2019 to streamline operations and focus on core activities.
Present:
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Currently, Shree Renuka Sugars is consolidating its subsidiaries and expanding ethanol production. Recently, it merged Monica Trading, Shree Renuka Agri Ventures, and Shree Renuka Tunaport into the main company. In February 2023, Shree Renuka Sugars Limited (SRSL) ramped up its ethanol production capacity to 1250 thousand liters per day (KLPD) across strategic units located in Karnataka. These strategic moves aim to enhance operational efficiency and strengthen the company's market position, impacting the Renuka Sugar share price favorably for investors tracking its growth.
|
Name |
Shree Renuka Sugars Ltd. |
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Founded year |
1998 |
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Chairman |
Atul Chaturvedi |
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Headquarters |
Belagavi, Karnataka, India |
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Sector |
Sugar |
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Major subsidiaries |
Anamika Sugar Mills Private Limited Gokak Sugars Limited Renuka Commodities Dmcc Shree Renuka Tunaport Private Limited Shree Renuka Infraprojects Ltd. and More |
|
revenue |
Rs. 100,876.0 million (US$1.2 billion) |
|
Nse code |
RENUKA |
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Bse code |
532670 |
Timeline of Shree Renuka Sugars Limited :
|
Year |
Fact |
Description |
|
1998 |
Acquisition of Nizam Sugars' Assets |
Shree Renuka Sugars Limited acquired a sick unit from Nizam Sugars Limited, which included a 1,250 TCD sugar mill and 135.552 acres of land at Sudhanagar Sugar Unit, Parigi Mandal, near Hindupur, Ananthapur District, Andhra Pradesh. The transaction included land, buildings, plant, machinery, and employees. |
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1999 |
Plant Shift and Capacity Enhancement |
The company moved the plant and machinery from Hindupur to the Munoli Unit in Belgaum and increased capacity from 1,250 TCD to 2,500 TCD. |
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1999 |
Start of Commercial Production |
Shree Renuka Sugars began commercial sugar production at Munoli and entered a power purchase agreement with Karnataka Electricity Board for 7.55 MW of surplus electricity, initially for 10 years, with an extension option for 20 years at Rs. 2.25 per kilowatt hour, with a 5% annual escalation. |
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2000 |
Cogeneration Plant Commissioning |
An 11.2 MW cogeneration plant was commissioned to produce electricity from Bagasse at Munoli. |
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2002 |
Distillery Installation |
A 60 KL capacity distillery was installed at Munoli for ethanol production. |
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2003 |
Co-generation Capacity Increase and Sugar Refinery Setup |
The company increased co-generation capacity to 20.5 MW and established a 250 TPD sugar refinery at Munoli. |
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2004 |
Refinery Capacity Expansion |
The capacity of the Munoli sugar refinery was expanded from 250 TPD to 1000 TPD. |
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2004 |
Lease of Ajara Unit II |
Shree Renuka Sugars leased a 2,500 TCD sugar factory from Ajara Shetkari Sahakari Sakhar Karkhana Limited for two years, until September 26, 2006. |
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2004 |
Subsidiary in Dubai |
Renuka Commodities DMCC was established in the Dubai Free Trade Zone for international sugar trading. |
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2005 |
Lease of Mohannagar Unit III |
The company leased a 2,500 TCD sugar factory from Mohanrao Shinde Sahakari Sakhar Karkhana Limited for six years, covering the crushing seasons from 2005-2006 to 2010-2011. |
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2005 |
MoU with Haripriya Sugar Works |
Shree Renuka Sugars signed an MoU to acquire all assets (excluding receivables) of Haripriya Sugar Works Limited, including 162 acres in Burlatti village, Taluka Athani, District Belgaum, Karnataka, for Rs. 40 million. |
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2006 |
Board Changes and Strategic MoUs |
The company announced a board change with the withdrawal of IDBI nominee director B S Parashivamurthy and signed a MoU with Copersucar, Brazil, for a Munoli project partnership. |
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2007 |
New Whole Time Director |
Nitin Puranik was appointed as the Whole Time Director, effective April 20, 2007. |
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2008 |
MoU with HPCL and Gokak Sugars Acquisition |
The company signed a MoU with HPCL to establish a joint venture for an Integrated Sugar and Ethanol Plant in Maharashtra and acquired an 87% stake in Gokak Sugars. The company's face value was split from Rs. 10 to Rs. 1. |
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2009 |
NCDEX Stake Acquisition and Brazilian VDI |
Shree Renuka Sugars acquired a 5% stake in NCDEX for Rs. 36.50 crores and also purchased the Brazilian sugar and ethanol producer VDI. |
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2010 |
Equipav Deal in Brazil |
The company acquired a 51% stake in Equipav S.A., Brazil, for Rs. 1,530 crore, forming one of the largest sugar/ethanol groups in Brazil. It also secured an order for 118 million liters of ethanol and announced a 1:1 bonus. |
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2011 |
Kandla Sugar Refinery Commissioning |
Shree Renuka Sugars launched the Kandla Sugar Refinery, expanding its refining capabilities. |
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2012 |
Stake Increase in Renuka do Brazil |
The company increased its stake in Renuka do Brazil S/A to 59.4%. |
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2013 |
Guwahati Sugar Depot Inauguration |
Shree Renuka Sugars inaugurated its first sugar depot in Guwahati, Assam |
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2014 |
Wilmar Strategic Stake Acquisition |
Wilmar announced plans to acquire a strategic stake in Shree Renuka Sugars Limited. |
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2018 |
Completion of Wilmar Stake Acquisition |
Wilmar finalized the acquisition of a strategic stake in Shree Renuka Sugars Limited. |
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2021 |
Ethanol Production Capacity Expansion |
Shree Renuka Sugars expanded its ethanol production capacity. |
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2022 |
Subsidiaries Amalgamation |
The company amalgamated its wholly-owned subsidiaries: Monica Trading Private Limited, Shree Renuka Tunaport Private Limited, and Shree Renuka Agri Ventures Limited. |
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2023 |
Acquisition of Anamika Sugar Mills |
Shree Renuka Sugars acquired 100% of equity shares of Anamika Sugar Mills Private Limited and commenced commercial ethanol production. |
Inside Shree Renuka Sugars Limited: Exploring Products/Brands
Shree Renuka Sugars Limited
Corporate actions: The final cash dividend of Rs. 0.50 per share was scheduled with an ex-dividend date of August 19, 2013. The current Renuka sugar share price is Rs 50.78 as of 23 June 2024.
Main News: In Q4, Shree Renuka Sugars reported a net loss of Rs 111.7 crore, attributed to increased expenses such as a deferred tax charge of Rs 65.1 crore and a cane expense of Rs 25.1 crore.
Anamika Sugar Mills Private Limited
Main News: Shree Renuka acquired Anamika Sugar Mills, based in Uttar Pradesh, for Rs 200 crore.
Godavari Biofuel Pvt. Ltd.
Main News: In June 2024, Godavari Biorefineries planned to utilize the net proceeds from its IPO to repay or prepay certain outstanding borrowings totaling Rs 240 crore, with the remaining funds allocated for general corporate purposes.
KBK Chem-Engineering Pvt. Ltd.
Main News: KBK Chem Engineering received the award for the best innovative technology supplier in the sugar and ethanol industry at SEIA 2024.
Current Shree Renuka Sugars limited share price NSE/BSE :
|
COMPANY NAME |
SECTOR |
SHARE PRICE LINK |
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Shree Renuka Sugars limited |
Sugar |
Achievements and Milestones:
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Madhur Sugar, a key product of Renuka Sugars, was awarded the prestigious Femina Power Brands 2021, recognizing its superior quality and strong market presence.
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In 2021, Madhur Sugar earned a spot among the Economic Times Best Brands, highlighting its robust brand equity and consumer loyalty.
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In 2022, Madhur Sugar was named one of the Most Trusted Brands, underscoring its consistent commitment to quality and trustworthiness in the market.
CONCLUSION
In conclusion, Shree Renuka Sugars Limited has navigated a complex journey marked by significant milestones, strategic expansions, and challenging financial metrics. Despite facing hurdles like a net loss in Q4 and liquidity concerns, the company has made substantial strides in consolidating operations and boosting ethanol production capacity. These efforts are poised to enhance operational efficiency and stabilize the Renuka Sugar share price, making it a potentially favorable prospect for investors. As of now, the Renuka Sugar share price stands at Rs 50.78, reflecting both the company's achievements and ongoing challenges in the agri-business and bio-energy sectors.
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Frequently Asked Questions:
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Where can I find real-time updates on the Renuka sugar share price?
Explore the latest Renuka sugar share price and real-time stock price updates on Enrich Money's stock analysis page here.
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What has been the highest Renuka share price in the last 52 weeks?
52 Week's highest share price of Shree Renuka sugar is Rs 68.75, while 52 Week's lowest Renuka share price is Rs 38.90
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How has Renuka Sugar's revenue grown compared to the industry average over the past 5 years?
Renuka Sugar's revenue has shown a modest average annual growth rate of 3.1%, contrasting with the industry average of 9.46%. This slower growth rate may have impacted the Renuka Sugar share price.
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What has been the trend in Renuka Sugar's debt-to-equity ratio over the past 5 years?
Over the last 5 years, Renuka Sugar's debt-to-equity ratio has been negative, at -536.04%. This negative ratio might affect investor perception and the Renuka Sugar share price.
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How does Renuka Sugar's current ratio compare with the industry average?
Renuka Sugar's current ratio over the past 5 years has been 51.6%, compared to the industry average of 98.23%. This lower ratio could potentially impact the Renuka Sugar share price.
