Davangere Sugar Company Ltd (DSCL) was incorporated in 1970 as a Joint Sector Company by Karnataka Agro Industries Corporation Limited, Karnataka State Small Industries Development Corporation Limited, IDBI, ICICI, IFCI, and local farmers, with an initial equity capital base of ₹1.6 Crores. It is now part of the Shamanur group. Davangere Sugar Company Limited is an India-based company engaged in sugar manufacturing (from sugarcane by-product molasses) and co-generation of electricity power.
The company commenced commercial operations in October 1974 with an installed capacity of 1250 TCD (Tonnes of Cane Crushed per Day). Although declared a sick unit during 1986-87 due to continuous losses, the company has since recovered and expanded its operations significantly.
The company's operations are primarily focused on Sugar, Co-generation, Distillery, and other related activities. It operates across multiple interconnected business lines, leveraging sugarcane as the primary raw material.
The Company is a prominent player in the sugar business, boasting a present capacity of 4750 TCD at its sugar plant. Its manufacturing capabilities include sugar production (4750 TCD), distillery operations (65 KLPD - Kiloliters Per Day), and co-generation of power (24.45 MW - Megawatts).
The company has invested significantly in infrastructure. Its sugar unit buildings cover an extensive area of approximately 2,83,874 square feet. Additionally, it has established 5 large warehouses with a combined capacity to store 6 lakh quintals of sugar, ensuring efficient storage and distribution.
The Company produces green energy by installing molasses/sugar syrup and grain-based ethanol units. In 2022, it installed a molasses/sugar syrup and grain-based Ethanol unit with an installed capacity of 65 KLPD, commencing commercial production from Q1 FY23. This expansion underscores the company's commitment to diversification and sustainable energy production.
Key products include sugar, molasses, and power. DSCL has established popular brands such as Davangere Gold and Davangere Supreme. The company has also achieved technological recognition, being the first in Karnataka to install a high-pressure/temperature configuration (86.5 kg/sq cm pressure and 515°C temperature) in a sugar co-generation unit.
The company has undergone significant capacity expansion over the years.
- During 2003-04, the sugar production capacity was increased by 1,000 TCD to 3,500 TCD.
- Commercial operation of power generation commenced in March 2004.
- Between 2006-2012, the cane-crushing capacity was expanded from 2,500 TCD to 4,750 TCD.
- The refined sugar manufacturing unit was also expanded with 500 TCD in 2012.
Davangere Sugar Company Ltd operates in a competitive market environment with established manufacturing capabilities and a distribution network. As of [Insert Date Here], its market capitalization stands at ₹345.29 Cr.
- Sales: Declined by 0.71% to ₹214.99 crore in the year ended March 2025, compared to ₹216.53 crore in the previous year ended March 2024.
- Net Profit: Declined by 10.62% to ₹10.94 crore in the year ended March 2025, compared to ₹12.24 crore in the previous year ended March 2024.
- Sales: Declined by 10.48% to ₹56.91 crore in the quarter ended March 2025, compared to ₹63.57 crore in the previous quarter ended March 2024.
- Net Profit: Declined by 57.36% to ₹1.94 crore in the quarter ended March 2025, compared to ₹4.55 crore in the previous quarter ended March 2024.
- Revenue: ₹73.58 Cr.
- Net Profit: ₹6.77 Cr.
- Revenue Growth: Annual revenue de-growth of -3% indicates room for improvement.
- Pre-tax Margin: 6% is considered acceptable.
- ROE (Return on Equity): 3% is fair but could be improved.
- Debt to Equity Ratio: The company maintains a reasonable debt-to-equity ratio of 14%, signaling a healthy balance sheet.
- Promoter Holding: 52.3%.
To enhance ethanol production, the company plans to procure more maize, supported by government initiatives. This strategic move aligns with the government's push for biofuel production and presents an opportunity for revenue diversification. The company's focus on ethanol production positions it well to benefit from India's growing emphasis on renewable energy and biofuels.
Davangere Sugar Company continues to operate in the agricultural processing sector, leveraging its established infrastructure and expertise in sugar manufacturing while expanding into complementary areas such as ethanol production and power generation. With its integrated business model spanning sugar production, distillery operations, and co-generation of power, DSCL remains positioned to capitalize on synergies across its business segments, despite recent financial challenges.
