SAKTHI SUGARS LIMITED
ANNUAL REPORT 2006-2007
I am pleases to present the financial results for the year 2006-07 of the
Company. The upswing in the sugar cycle lasted for a very short time. The
very high production of sugar in India and Brazil and also the untimely ban
on export of sugar in India created the current crisis in the Industry.
The above factors had an adverse effect on the results of the company.
Although the level of crushing has gone up to 34.77 lakh tonnes (previous
year 27.47 lakh tonnes), the year has ended with a lesser turnover at
Rs.766.52 crores compared to Rs.896.02 crores and the net profit at
Rs.30.18 crores (previous year Rs.96.16 crores). The operations of
distillery and co-generation plants were optimal and have contributed to
balance out the negative results of the sugar division. I am glad to
mention that the dividend is being maintained at 15% to equity
The new sugar unit with 3500 TCD capacity and 25 MW co-generation plant at
Modakurichi were commissioned in September 2007. Implementation of the
other two co-generation projects at Sivaganga and Sakthinagar are in
progress respectively. The company has also expanded the distillation
capacity to 120 KLPD from 90 KLPD at Sakthinagar. Availability of sugar
cane continues to be sufficient to maintain optimum utilization of the
capacity. With all the new capacities in operation, I am confident that the
performance of the Company will be better in the years to come.
I express my sincere gratitude to the stake holders for their continued
support. I thank my colleagues on the Board, cane growers, suppliers,
bankers, financial institutions, Central and State Governments and all
others for their continued support.