Breaking Down Shree Renuka Sugars Limited Financial Health: Key Insights for Investors

Founded in 1998 by Narendra and Vidya Murkumbi, Shree Renuka Sugars Limited has grown from a single sugarmaker into India's largest sugar refiner with a refining capacity of 4,000 tonnes per day and a dominant 33% share of the packaged sugar market under its Madhur brand; the company now operates six sugar mills with a combined crushing capacity of 46,000 tpd, two major port-based refineries at Kandla and Haldia, and a distillery capacity expanded to 1,250 kilolitres per day-driving revenue streams that include ₹2,577.1 crore from milling, ₹7,491.2 crore from refining and a striking ₹8,604 crore from ethanol in FY 2023-24, while power generation from bagasse added ₹338.0 crore and trading accounted for 11% of operations, all under a family-led ownership where the Murkumbi group holds 62.48% control and the company pursues sustainability, R&D (₹50 crore in 2023) and ₹250 crore of farmer-centric investments as it expands exports to 15+ countries and enters markets like Canada.

Shree Renuka Sugars Limited (RENUKA.NS): Intro

• 1998 - Shree Renuka Sugars Limited (RENUKA.NS) was founded by Narendra Murkumbi and Vidya Murkumbi, entering India's sugar sector.
• 2000 - Commissioned an 11.2 MW bagasse-based cogeneration plant at the Munoli unit to produce captive and grid electricity.
• 2002 - Installed a 60 KL/day distillery at Munoli to begin commercial ethanol production and diversify into bioenergy.
• 2008 - Formed a joint venture with Hindustan Petroleum Corporation Limited to develop an integrated sugar‑ethanol complex, reinforcing a focus on sustainable fuels.
• 2015 - Achieved status as India's largest sugar refiner with a refining capacity of 4,000 tonnes per day and an aggregate distillery capacity of 600 KL/day.
• 2025 - Merged three wholly‑owned subsidiaries (Monica Trading Pvt. Ltd., Shree Renuka Agri Ventures Ltd., Shree Renuka Tunaport Pvt. Ltd.) into the parent company to simplify structure and improve operational efficiency.

• Sugar refining capacity: 4,000 tonnes per day (as of 2015 benchmark).
• Distillery/ethanol capacity: 600 kilolitres per day (aggregate, noted in 2015).
• Cogeneration (bagasse) capacity at Munoli: 11.2 MW installed in 2000; additional captive/third‑party export capacity in other units (varies by season).

• Promoter founders: Narendra Murkumbi and Vidya Murkumbi remain primary promoters and board influencers.
• Public listing: Shares trade on NSE/BSE under ticker RENUKA.NS with institutional and retail holders forming the free‑float.
• Corporate streamlining in 2025 reduced holding‑company complexity by folding key subsidiaries into the parent legal entity.

• Stated orientation toward integrated sugar refining, ethanol/biofuel production and renewable energy (bagasse cogeneration).
• Focus on sustainability: optimizing cane value chain, reducing carbon intensity via cogeneration and ethanol displacement of fossil fuels.
• See corporate articulation here: Mission Statement, Vision, & Core Values (2026) of Shree Renuka Sugars Limited.

• Cane procurement: sourcing from contracted and local farmers; raw sugarcane processed at milling/refinery units.
• Sugar production & refining: crushing → juice extraction → crystallization → refining for industrial/retail offtake.
• Distillation/ethanol: fermentation of molasses/juice → distillation → hydrous/anhydrous ethanol sold to OMCs and industrial customers.
• Cogeneration: burning bagasse to produce steam and electricity for captive use and grid export during season peaks.
• Logistics & byproducts: sale of molasses, press mud (biofertilizer), and exported/refined sugar to domestic and international markets.

• Sugar and refined sugar sales (bulk industrial and packaged retail segments).
• Ethanol sales to oil marketing companies (under EBP blending mandates) and industrial buyers.
• Power sales from bagasse‑based cogeneration (captive use lowers internal cost; surplus exported under power purchase agreements).
• Byproduct sales: molasses, biofertilizers (press mud), and occasional trading/commodities operations.
• Refining margin capture by processing raw/refined flows at scale (large refining capacity provides economies of scale).

Shree Renuka Sugars Limited (RENUKA.NS): History

• Founding & growth: started as a regional sugar mill and expanded into an integrated player across sugar, ethanol, power (bagasse-based cogeneration) and industrial chemicals.
• Capacity expansion: progressively increased crushing and distillery capacities to capture seasonal and policy-driven ethanol demand.
• Restructuring & recapitalisation: converted loans, equity allotments via subsidiaries and engaged stakeholders to shore up liquidity (notably KBK Chem-Engineering allotment in Nov 2025).

• Capital restructuring example: in November 2025, KBK Chem-Engineering Pvt Ltd (100% subsidiary) allotted 249,122 equity shares to SRSL at ₹2,302.69/share (total ₹573.65 million) as part of converting an intercompany loan-improving subsidiary equity and reducing group leverage.
• Investor mix: modest FII interest at 3.49% and DIIs at 9.99% signal limited foreign exposure but stable domestic institutional participation.
• Balance-sheet risk: a debt-to-equity of -7.43 (Mar 2023) reflects liabilities materially exceeding equity, constraining borrowing capacity and increasing refinancing risk.

• Sugar sales: bulk and branded sugar to domestic and export markets-seasonal margins tied to cane prices and government MSP/export policy.
• Ethanol: fuel ethanol supplied to OMCs under BSVI/ethanol blending programmes-higher-margin, policy-driven revenues with capacity utilisation critical to returns.
• Power & cogeneration: bagasse-fired power sold to grid-steady non-seasonal income during the crushing season plus REC/ancillary revenues when available.
• By‑products & chemicals: sale of molasses, specialty sugars and chemical intermediates via subsidiaries (e.g., KBK Chem-Engineering) augment margins and allow loan-to-equity conversions for balance-sheet repair.

• Utilisation rates: crushing and distillery utilisation drive fixed-cost absorption-improving utilisation materially lifts EBITDA per tonne of cane.
• Raw material cost management: supplier (cane) procurement and sugarcane price negotiation are primary determinants of gross margin.
• Policy dependence: government support for ethanol blending and sugar export/import controls materially affect pricing and volumes.
• Capital structure actions: equity allotments (e.g., Nov 2025 KBK allotment) and debt conversions are used to reduce leverage and improve solvency metrics.

Shree Renuka Sugars Limited (RENUKA.NS): Ownership Structure

• Mission: To be a leading agribusiness and bioenergy company, focusing on sustainable practices and innovation to meet global energy and food demands.
• Operational excellence & innovation: Prioritizes automation, digitalization and selective AI-driven process controls to raise throughput and reduce downtime across plants.
• Sustainable rural development: Invests in farmer support programs, credit linkages, varietal research and extension services to stabilize supply and improve incomes.
• Environmental stewardship: Emphasizes eco-friendly farming, renewable energy (bagasse cogeneration, ethanol), water conservation and integrated waste management.
• Community welfare: Runs social initiatives in health, education and livelihoods in cane-growing regions where it operates.

• Sugar production: Crushes sugarcane at integrated mills to produce raw and refined sugar; margin driven by recovery rates, cane cost and refinery yields.
• Refining & trading: Operates sugar refineries producing white/refined sugar for domestic and export markets; trading arbitrages seasonality and international prices.
• Ethanol production: Ferments molasses and B-heavy molasses/juice to produce fuel ethanol under government blending mandates-a growing high-margin stream.
• Power generation: Bagasse-based cogeneration supplies captive power; surplus exported to state grids, adding steady non-cyclic cashflow.
• By‑products & other agriculture inputs: Generates revenue from molasses, CO2, press mud (fertilizer), and sale of ethanol-derived distillers' grains.

• Promoter group: Holds a meaningful stake contributing strategic control and long-term capital-promoter ownership typically ranges in mid‑teens to low‑30% band in recent years (subject to filings).
• Institutional investors: Domestic mutual funds and foreign institutional investors (FIIs) together form a significant portion of public float-often ~20-40% combined depending on market movements.
• Public & retail shareholders: Make up the remaining free float and provide liquidity on NSE (RENUKA.NS).
• Board & management: Comprised of industry professionals with sugar, refining and agri‑business backgrounds; corporate governance aligned to listed‑company norms with audit and CSR committees.

• Product mix optimization: Shifting volumes toward ethanol and refined sugar when spreads favor higher‑value outputs.
• Cost control and recovery improvement: Yield and recovery gains translate directly to margin expansion-focus on varietals, mill efficiency, and inventory management.
• Renewables & power sales: Bagasse cogeneration and grid sales provide counter‑cyclical revenue during off‑season for sugar.
• Export arbitrage & hedging: Tactical exports and commodity hedges protect margins when international sugar/ethanol prices diverge from domestic levels.

Shree Renuka Sugars Limited (RENUKA.NS): Mission and Values

• Six sugar mills located across Maharashtra and Karnataka with combined crushing capacity of 46,000 tonnes per day (tpd).
• Two large port-based sugar refineries at Kandla (Gujarat) and Haldia (West Bengal) improving refining efficiency and export logistics.
• Branded white and refined sugar sold under the 'Madhur' brand, holding ~33% market share in India's packaged sugar segment.
• Distillery capacity of 1,250 kilolitres per day (klpd) producing ethanol (fuel blending), potable alcohol and industrial alcohols.
• Cogeneration of power from bagasse, supplying renewable electricity to operations and the grid.
• Active exports of refined sugar to the Middle East and Africa, diversifying revenue beyond domestic sales.

• How it makes money: sale of bulk and packaged sugar (Madhur), refined sugar exports, ethanol and alcohol sales, power sales from bagasse, by-product sales (molasses, press mud), and refinery trading margins.
• Revenue diversification: vertical integration (farm-to-refinery), branded retail presence, and port-based refineries that lower shipping/refining costs and support higher-margin exports.
• Strategic advantages: port access for efficient export logistics, large refinery scale, strong branded market share, and alignment with India's national ethanol blending program.

Shree Renuka Sugars Limited (RENUKA.NS): How It Works

• Core activities: cane procurement & milling, raw sugar refining, packaged sugar (Madhur), ethanol production, bagasse-based power generation, and commodity trading.
• Scale: integrated operations across multiple plants, large refining throughput and export-oriented refining margins.
• Strategic alignment: supports India's ethanol-blending program and renewable energy targets through captive ethanol production and co-generation.

• Sugar milling: purchases sugarcane from farmers, crushes cane to produce raw sugar and molasses; earns revenue from sale of raw sugar and by-products.
• Refining: imports and refines raw sugar at scale, selling refined sugar domestically and into export markets where higher margins are captured; significant contributor to revenue (₹7,491.2 crore in FY 2024-25).
• Packaged sugar (Madhur): value-added retail play with branded packs sold to FMCG channels and distributors, contributing ₹732.7 crore in FY 2024-25.
• Ethanol: converts molasses and B-heavy/ C-heavy streams and molasses-to-ethanol processes in large-capacity plants (1,250 KL/day); supports government ethanol-blending mandates and generated ₹8,604 crore in FY 2023-24.
• Co-generation: uses bagasse (sugarcane residue) to produce and sell electricity, reducing energy costs for plants and selling surplus power to state grids-revenue of ₹338.0 crore in FY 2024-25.
• Trading: commodity trading and trading of sugar and related products account for a diversified revenue source-11% of operations revenue in FY 2023-24.

• Refining scale and exports drive margins via bulk shipments and forex-linked prices.
• Ethanol realization depends on government procurement prices and blending mandates; higher realizations boost profitability.
• Packaged sugar benefits from brand premiums and retail distribution efficiencies.
• Co-generation lowers energy costs and creates an additional sold-off revenue stream.
• Commodity trading smooths cash flow and takes advantage of price volatility.

• Ethanol capacity: 1,250 kilolitres per day - central to refining by-product monetization and long-term revenue from biofuel programs.
• Integrated value capture: converting molasses to ethanol and bagasse to power lifts overall realizations per tonne of cane.
• Geographic reach: domestic retail plus export channels for refined sugar diversify demand exposure.

Shree Renuka Sugars Limited (RENUKA.NS): How It Makes Money

• Packaged sugar (branded retail) - SRSL is India's largest sugar refiner with a 33% market share in the packaged sugar segment.
• Bulk sugar sales - white and raw sugar sold to food processors, wholesalers and export markets.
• Ethanol - supply to OMCs and industrial customers, leveraging government blending mandates.
• Power - sale of surplus cogenerated electricity from bagasse-based plants to state grids and captive use.
• International trading and refining - operations across multiple countries, including Brazil and South Africa, plus recent North American entry.

• Diversification across product lines (retail sugar, bulk sugar, ethanol, power) reduces reliance on any single commodity price cycle.
• International expansion and trading mitigate domestic regulatory and cyclical risks; Canadian branded launch opens North American retail opportunity.
• Investment in R&D (₹50 crore in 2023) aims to improve product mix, processing yields and value-added offerings.
• Sustainability and farmer livelihood investments (≈₹250 crore in 2023) secure raw material supply, improve cane quality and can lower procurement volatility.