Dalmia Bharat Sugar and Industries Limited (DBSIL) is a leading Indian sugar producer and a part of the Dalmia Bharat Group. Incorporated in 1951 and headquartered in New Delhi, India, the company entered the sugar industry in 1994 by establishing a 2,500 TCD (Tons of Cane per Day) capacity sugar mill in Uttar Pradesh. Today, the company operates with a total cane crushing capacity of 35,500 TCD.
DBSIL is primarily engaged in the manufacturing of sugar, generation of power, manufacturing of industrial alcohol, and manufacturing of refractory products. Through its integrated business model, the company has established itself as a significant player in India's sugar sector, maximizing value creation from sugarcane processing.
The company operates through four distinct segments:
- Own Manufactured Sugar Segment: Includes the manufacture and marketing of sugar.
- Power Segment: Involves the generation and sale of power for both commercial purposes and captive consumption.
- Distillery Segment: Focuses on the production and sale of ethanol, extra neutral alcohol, and hand sanitizers.
- Others Segment: Encompasses magnesite, travel, and electronics activities.
DBSIL manufactures and sells refined sugar and double sulphitation sugars, along with by-products such as bagasse and molasses used to generate power. It also produces alcohol-based hand sanitizers under the 'Dalmia Sanjeevani' brand name and sulphur-free white crystal sugar and natural brown sugar under the 'Dalmia Utsav' brand name. Additionally, it produces and sells various types of alcohol, including rectified spirits, extra neutral alcohol/hydrous alcohol, denatured spirits, and ethanol or anhydrous ethanol, while also manufacturing refractory products.
Demonstrating a commitment to sustainable business practices, Dalmia Bharat Sugar and Industries Limited generates renewable energy through co-generation plants with a combined capacity of 126 MW. The company also operates wind farms with a capacity of 17 MW, creating additional revenue streams beyond traditional sugar manufacturing.
The company supplies to various prominent brands, showcasing its strong market presence and established relationships with major corporations. Its client portfolio includes Coca-Cola, PepsiCo, Mondelez, Perfetti, Britannia, Wal-Mart India, Dabur, D-Mart, India Glycols, Allied Blenders & Distillers, United Breweries, Carlsberg, and SABMiller, spanning multiple industries.
Dalmia Bharat Sugar and Industries Limited has an operating revenue of ₹3,745.78 crores on a trailing 12-month basis. The company has demonstrated outstanding annual revenue growth of 27%, with a pre-tax margin of 9% and a return on equity (ROE) of 11%. The company maintains a reasonable debt to equity ratio of 16%, signaling a healthy balance sheet.
Recent quarterly performance shows mixed results:
- December 2024 Quarter: Net profit declined 8.33% to ₹59.51 crore as against ₹64.92 crore in the previous year's corresponding quarter (December 2023). However, sales rose 44.15% to ₹841.26 crore in the quarter ended December 2024 as against ₹583.59 crore in December 2023.
- September 2024 Quarter: Net profit rose 20.55% to ₹66.18 crore compared to ₹54.90 crore in September 2023. Sales increased 26.58% to ₹926.39 crore in September 2024 versus ₹731.85 crore in September 2023.
- Market Capitalization: ₹3,193 crores
- Revenue Mix for FY23: Sugar - 67%, Distillery - 23%
- Return on Equity (ROE): 10.3% over the last 3 years
- Dividend Payout: 13.4% of profits over the last 3 years
- Interim Dividend: ₹4.5 per equity share (225%) recommended by the Board in February 2025
Beyond its core sugar and allied operations, the company also engages in magnesite, travel, and electronics businesses. It further produces organic manure for farmers and tea estates. This diversification strategy helps the company maintain multiple revenue streams and reduces dependence on core sugar operations.
Dalmia Bharat Sugar and Industries Ltd. focuses on sustainable practices and innovative solutions, catering to domestic and international markets with a commitment to quality. The company's integrated approach to sugarcane processing, combined with its expansion into renewable energy and diverse product portfolio, positions it well in India's evolving agricultural and industrial landscape.
