Sugar stocks are shares in companies involved in the production, processing, and distribution of sugar and related products like ethanol and electricity. They offer a way to gain exposure to the sugar industry’s growth and potential fluctuations in sugar prices.
The following are some of the advantages of investing in sugar stocks in India:
If you are interested in the top sugar-producing stocks that may give you high returns, check out the section below.
The following are some of the top sugar companies in India:
|Name of the Stock
|ROCE (in %)
|Magadh Sugar & Energy
|Dhampure Speciality Sugars
|Triveni Engineering and Industries
|Ugar Sugar Works
Note: The data is taken as of December 6, 2023. The rankings are done based on 5-year CAGR.
The company focuses on producing and selling sugar, its byproducts, and denatured spirits, including ethanol. It is a part of the K. K. Birla Group of Sugar Companies.
Established in 1995, Gayathri Sugars manufactures sugar and related products and operates a power generation unit. It offers a range of products, including commercial sugar, green power, distillery products, and hand sanitizers.
The company produces, processes, deals in, imports, and exports all kinds of sugar products, including inverted sugar, raw sugar, gur, and khandsari. It has also diversified its offerings into health snacks, baking essentials, Gur-based sweets, jams, preservatives, mouth fresheners, and various types of sugars.
It is an integrated and diversified conglomerate specialising in sugar, ethanol, and engineering. It is strategically located in sugarcane-rich regions of western and central Uttar Pradesh. It also ranks among India’s top 3 sugar manufacturers and the second-highest ethanol supplier.
Founded in 1939, the company manufactures and sells sugar, industrial and potable alcohol and generates and distributes electricity. It operates in a long-standing tradition of sugar production and diversification.
|Name of the Stock
|ROCE (in %)
|Shree Renuka Sugar
|Balrampur Chini Mills
|Dalmia Bharat Sugar & Industries
Note: The stocks have been chosen based on their market capitalisation as of December 6, 2023.
The sugar industry in India holds a significant position in the country’s agricultural and economic landscape. It is well known for its historical importance and contribution to rural development; the industry plays a vital role in job creation, rural income generation, and the overall growth of the Indian economy.
The country’s diverse agro-climatic conditions, with an adequate supply of freshwater via rivers and monsoon rains, provide an ideal environment for sugarcane cultivation. States like Maharashtra, Uttar Pradesh, Karnataka, Gujarat, and Tamil Nadu are the leading sugarcane-producing regions.
India is the world’s second-largest producer of sugar. After Brazil, the nation produced around 30 million metric tonnes of sugar. India not only ranks among the top three countries in the world for sugar production, but it also has the highest global sugar consumption.
The ‘National Policy on Biofuels’ notified by the Government in 2018 had set an indicative target of 20% ethanol blending in petrol by year 2030, which was later advanced to 2025-26. The government’s initiatives to promote ethanol production have played a pivotal role in fostering the growth of the industry and generating new employment prospects. In addition, the growing food and beverage processing industries, such as the alcohol and soft drinks industry, which use added sugar, also act as an avenue for growth.
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Disclaimer: This article is written for educational purposes only. The securities mentioned are examples and not recommendations.
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