Kriya

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SAKTHI SUGARS LTD.

• Kriya
• Vidya
• Ghyan
• Suba

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• Analyst Meet
• Mumbai, April 12, 2006

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Structure

• Sakthi Sugars At a Glance
• Sugar Allied Business
• Sakthinagar Unit
• Sivaganga Unit
• Dhenkanal Unit
• Sakthi Soya
• Sakthi Auto Component Ltd.
• Operational Highlights
• Financial Highlights
• Social Commitments
• New Developments
• Crystal Ball Gazing

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Sakthi Sugars At a Glance
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Vision

• To be one of the top 5 producers of Sugar in
  India
• To be one of the top Auto component manufacturers
  in India
• To be a leading producer of Alcohol and allied
  energy products
• To have the best possible alternative power
  producers in the country
• To maximize the trade in Raw sugar so as to
  maximize the earnings of the company

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Business Overview

• Snapshot
• Fourth largest sugar company in India in terms of
  sugar produced
• The largest distillery in Tamilnadu
• One of the few fully integrated sugar complexes
  in the country
• Among the first to handle raw sugar processing in
  the country
• One of the lowest cost power projects in the
  country
• Soya unit, one of the first to produce edible
  Protein
• Auto component unit, sole supplier to Indian
  market

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Business Overview

• Infrastructure
• 3 Sugar Units (Sakthinagar Tamil Nadu,
  Sivaganga Tamil Nadu, Dhenkanal Orissa)
  Total crushing capacity 13,500 TCD
• 2 Distillery Units (Sakthinagar, Dhenkanal)
  Total capacity of 120,000 litres per day
• 2 Co-generation Units (Sakthinagar, Sivaganga)
  Total capacity 35 MW
• 1 Soya Unit (Pollachi Tamil Nadu) Total
  capacity 90,000 MT per annum
• Auto Component Subsidiary manufactures critical
  parts for the Auto industry

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Sugar The Pecking Order
includes sales from other businesses
does not include Shree Ambika Sugars
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Sugar Allied Businesses
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Sakthinagar

• Sugar Division
• Capacity of 7,500 TCD
• Situated in most favourable climatic zone in the
  country
• Highest quantum of sugarcane crushing in a single
  unit in the country
• Current year crushing target - 22 lakh MT
• Capable of operating 365 days in a year
• Revenue generation in FY06 to be about Rs. 390
  crore

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Sakthinagar

• Distillery Division
• Capacity of 90,000 litres per day
• Operates 365 days per annum
• Capable of producing 50,000 litres of Ethanol per
  day
• Production expected to be at 3 crore litres in
  FY06
• Revenues expected to be around Rs. 62.4 crore

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Sakthinagar

• Co-generation Division
• 32 MW generation capacity
• Project cost of Rs. 2.1 crore per MW lowest in
  the industry
• Commissioned in November 2003
• Total power production per annum will be about
  2,650 lakh units and the evacuation to the state
  grid per annum will be about 170 lakh units
• Revenue generation of Rs. 53.7 crore expected

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Sivaganga

• Sugar Division
• Capacity of 4,000 TCD Capable of 360 days
  operation
• Current year crushing will be about 6.5 lakh MT,
  in addition to 30,000 MT of raw sugar refining
• Crushing will reach 10 lakh MT during the next
  year
• Situated near the Tuticorin port, resulting in
  huge benefits on transport costs on imports and
  exports
• Annual revenues from this unit is expected to be
  about Rs. 160 crore in FY06

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Sivaganga

• Co-generation Division
• Incidental co-generation Capacity 5.5 MW
• Evacuation to the State Grid shall be 18 lakh
  units in FY06
• Revenue shall be Rs. 0.57 crore

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Dhenkanal

• Sugar Division
• Capacity of 2,000 TCD Operation throughout the
  year 180 days of Sugarcane and 180 days based
  on raw sugar
• Positioned in sugar deficient North-East region
  Capable of processing 300 tons of Raw sugar daily
• Proximity to Paradeep port gives tremendous
  advantage in terms of transports costs on Imports
• Cane crushed during 2006 will be 2.0 lakh MT, Raw
  sugar refining will be 25,000 MT Total revenues
  shall be Rs. 82 crore

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Dhenkanal

• Distillery Division
• 30,000 litres per day capacity Total production
  for FY06 will be 35 lakh litres
• Revenue shall be Rs. 10 crore

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Raw Sugar The Success Story

• First company in India to process imported raw
  sugar
• First company in the world to take-up refining of
  raw sugar in a plantation white sugar factory
• All the units are capable of processing imported
  raw sugar
• Better positioning of the units near port
  locations to take advantage on the arbitrage on
  the world sugar market

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Raw Sugar Processing Data
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Sakthi Soya
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Factfile

• Started as an independent company now a
  division
• State-of-the-art plant located at Pollachi with a
  capacity of 300 TPD and 100 TPD edible oil
  refinery
• Has Flash De-solventising System to manufacture
  high-protein soya flour and a Texturised
  Vegetable Protein (TVP) capacity of 20 TPD also
  produces TVP or soya chunks for the retail market
• Shortlisted for supply of food grade edible flour
  for World Food Programme of UN
• Revenues of Rs. 35 crore expected in FY06

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Sakthi Auto Component Ltd.
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Snapshot

• Established in 1983 (as a division of Sakthi
  Sugars)
• Capacity of 2,000 tons of castings per month
• Equipped with Flaskless vertical DISA moulding
  line and Special purpose dedicated Machining
  Lines
• Has sophisticated facilities for RD
• CNC Machine Division has imported equipments for
  machining rough castings to exacting standards of
  dimensional castings
• Single source supply for critical components to
  Maruti Udyog (17 years) and Hyundai

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OEM Vendor

• Has proven track record in providing high value
  safety critical auto components to leading
  domestic and global OEMs
• First vendor in Asia Pacific to obtain orders
  from Delphi North America
• Further orders obtained from ACI (Renault), GM
  India, GM Korea and GM Thailand
• 30 of turnover from exports, which is likely to
  grow by 50 per annum

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Product Line
Steering Knuckles
Brake Drums Discs
Exhaust Manifolds
Brake Calipers
Differential Case
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Revenue Mix
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Operational Highlights
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Operations Cane Crushed, Sugar Produced
Recovery
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Financial Highlights
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Performance For Mar 06
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Performance (Contnd)

• The cane crushing has more than tripled for the 9
  months
• The margins from Cogen plant has gone up many
  folds due to absence of fuel cost
• The sugar realisation has steeply increased from
  16350 per Mt for qtr Mar 05 to 17600 per mt for
  the Mar 06 qtr
• The company had exported 26558 Mts during the qtr
  on a total sale of 103676 Mts
• The realisation on exports was higher by Rs.1000
  per Mts and the company will continue to export
  about 50 of its production in the next one year

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Segment-wise Turnover
( Rs Crores)
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Segment-wise EBIDTA
( Rs Crores)
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Shareholding Pattern
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New Opportunities
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Raw Sugar Processing

• The sugar industry is in the process of decontrol
• Sakthi is the first company to start raw sugar
  processing in India
• Location of factories across ports at different
  sugar price zones gives edge to gain on sugar
  arbitrage

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Ethanol Blending

• 5 Ethanol blending with petrol has been made
  compulsory with effect from 1st October 2003 in
  nine sugar producing States
• Government exploring admixture with diesel
• Will save substantial forex
• Eco-friendly product answer of the times
• Will lower emission of green house gases will
  take to Euro IV faster
• To replace use of MTBE as an oxygenate in fuel
• To increase demand for alcohol and thereby
  molasses

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Attractive Co-generation Incentives

• Electricity Bill 2003 passed to open up power
  sector
• Sugar industry can generate 4,000 MW surplus
  power by using bagasse as by-product
• 10 power in India to come from renewable energy
  source
• Power generation from bagasse comes under clean
  power
• Soft loans to be provided from Sugar Development
  Fund to encourage co-generation at 4 interest
• Power distributors in India have to buy a certain
  percentage of power from renewable energy source

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Social Commitment
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Responsibility to Society

• The group has established and runs many colleges,
  polytechnics and schools.
• The total number of students in such institutes
  are around 20,000
• Rural Hospitals are being maintained
• The number of patients is around 700 per day
• A leprosy eradication programme is run by the
  group

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Responsibility to Society

• Many other institutes to deal with physically
  challenged and elders are being maintained.
• The colleges run by the group are ranked amongst
  the best in the country
• A de-addiction center is maintained

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Crystal Ball Gazing
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Expansion Elixir for Growth

• Rapid expansion on the anvil
• Total Capital Expenditure of Rs. 240 crore is
  planned over the next 18 months
• Expansion in sugar business greenfield (3500
  TCD)
• Expansion of co-generation capacity by 85 MW

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Sugar

• New plant with a capacity of 3,500 TCD planned
• New unit to have a 25 MW co-generation plant
• Capex estimated to be around Rs. 120 crore
• Plant expected to be commissioned by March 2007
• Revenue generation in full year of production
  expected to be in the region of Rs. 200 crore

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Co-generation

• Sakthinagar
• The company plans to increase the co-generation
  capacity by 25 MW taking the total capacity to
  about 60 MW
• The investment expected is about Rs. 60 crore
• The expected date of commissioning is June 2007
• The incremental revenues shall be about Rs. 40
  crore
• Sivaganga
• Propose to replace existing 5.5 MW incidental
  capacity with a full fledged 35 MW capacity
  co-generation unit
• Capex expected about Rs. 80 crore
• New co-generation unit expected to be
  commissioned by March 2007
• Additional revenue generation of around Rs. 40
  crore expected

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Future Guidance

• Cane crushing levels are likely to go up to 43
  lakh MT by FY08
• Sugar revenues likely to grow by 20 by FY2008
• Power revenues likely to increase by 300 by
  FY08will triple by FY08
• Auto revenues are likely to grow by 200 by FY08
  with the existing order book position

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THANK YOU

• Sarvam Sakthi Mayam