EID Sugar Business

Business Cyclicality & Industry Challenges Induced Cyclicality Industry Challenges Higher sugar production Higher sugarcane production 1 Improved profitability; Low sugarcane arrears 4-5 years Decline in sugar prices; Lower Profitability 2-3 years High sugarcane arrears 1 Decline in area under cultivation; Lower sugar cane production - Narrowing Spreads (Sugar price Cane price) ❖ Cane, Sugar, Power and Ethanol prices. controlled by GOI Stock surplus and depressed prices Seasonal run of plants - Average Operating days reducing from 180 to 120 ❖ Huge stress on water availability ✰ Decline of farming generation Lower sugar availability; Increase in sugar prices Lower sugar production PARRYS 19 murugappa

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