MVK Agro Food Product Ltd. IPO

We are an integrated sugar and other allied products manufacturing company operating from Nanded District in the State of Maharashtra. We operate a single location sugar unit having licensed crushing capacity of 2,500 TCD. In addition to sugar we also commercialise and sell our by-products and ... waste products, namely, Molasses, Bagasse and Pressmud. We are also engaged in the generation of Power for captive consumption. Our business can hence be broken up into two segments, namely Sugar and its by-products/waste products. In the year 2020, we commenced operations of manufacturing of Sugar. In the year 2020, our Company implemented backward integration and began commercial operations of the by-products and waste products of Sugar along with Co-Generation capabilities. Our Company has in the Fiscal 2023, completed three crushing seasons, i.e., 2020-21, 2021-22 and 2022-23. Over the years, we have expanded the production / manufacturing capacities of all our products. Read more

The sugarcane and sugar sector in India ranks second among the country’s agro-based industries, after cotton. India ranks first globally in sugar production. It produced about 37 million metric tons of sugar in 2022. It is not only responsible for the livelihood of sugarcane farmers in ... rural areas but also provides employment to about 500 thousand workers in the sugar mills. Additionally, the gross value added from the sugar crop was about 806 billion Indian rupees in 2020. Apart from being the leading sugar producer, India was also the third-largest exporter of sugar in the world in 2022. Sugar mills will show stable operating profitability on higher domestic sugar prices and increasing sales of ethanol which will subsequently help offset the rise in sugarcane cost and lower exports in fiscal 2024, according to a report by CRISIL. Sugar production is estimated to be 340 lakh tonnes in SS 2022-23, as compared to the peak of 358 lakh tonnes produced in the previous SS 2021-22; with the highest ever diversion towards ethanol estimated at 45 lakh tonnes (higher by 41% y-o-y), according to the Indian Sugar Mills Association (ISMA). This increasing diversion towards high realisation ethanol is likely to support 8-12% revenue growth for sugar mills this fiscal. By the year 2025, the government is targeting to divert 60 lakhs tonnes of excess sugar towards ethanol annually. Read more