Dhampur Sugar Mills Limited, incorporated in 1933 and headquartered in Dhampur, Uttar Pradesh, is one of India's oldest and most prominent integrated sugarcane processing companies. It operates multiple production units across the state and is publicly listed on both the NSE and BSE under the ticker symbol DHAMPURSUG. The company is currently under the management of V K Goel, the Chairman and Executive Director, and has built a reputation for combining traditional sugar production with modern industrial integration and sustainability practices.
What began as a sugar manufacturing unit has evolved into a diversified entity, maximizing value from sugarcane through various integrated operations including cane crushing, ethanol production from molasses, and power generation from bagasse.
Dhampur Sugar Mills operates through six primary segments:
- Sugar: Manufacturing and sale of sugar and its byproducts.
- Power: Co-generation and sale of power using bagasse (byproduct of sugar production).
- Distillery (Ethanol): Manufacturing and sale of Rectified Spirit (RS), Ethanol, Extra Neutral Alcohol (ENA), and industrial alcohol.
- Chemicals: Manufacturing and sale of ethyl acetate.
- Potable Spirit: Manufacturing and sale of country liquor.
- Other: Ancillary activities including the sale of agricultural products and petrol.
The company's integrated business model allows it to derive maximum value from sugarcane, with power generation from bagasse used for both captive consumption and merchant sales.
Dhampur Sugar Mills boasts extensive manufacturing capabilities across its various units:
- Sugar Units: Main unit at Dhampur with 1.2 million TCA (tonnes of cane crushed annually) and another unit at Mansurpur with 0.5 million TCA. The company also set up an additional sugar factory at Rouzagaon, Uttar Pradesh, with an installed capacity of 0.45 million TCA.
- Power Co-generation: Operates co-generation facilities with a combined capacity of 126.50 megawatts. Dhampur was among the first companies in India to install a 105 kg/cm² boiler and a 30 MW turbine, featuring one of the most efficient cogeneration systems in the country. The Dhampur sugar unit was also the first in the private sector to generate surplus power from cogeneration and supply it to the state power grid.
- Other Units: Includes a paper unit at Sikandrabad (50 TPD), a DSM Chemicals plant at Dhampur, and a Straw Board unit.
Dhampur Sugar Mills Limited's financial performance reflects the cyclical nature of the sugar industry and impacts from regulatory changes in the ethanol sector.
- Q4 FY2024-25 Consolidated Performance: Reported a profit of ₹49.05 crore on a total income of ₹620.54 crore. Net profit for the quarter fell by -5.46% year-on-year to ₹49.01 crore. Revenue increased for the last two quarters, from ₹418.57 crore to ₹620.54 crore, showing an average increase of 32.6% per quarter.
- Q3 FY2024-25 Performance: Net profit declined by 52.39% to ₹15.12 crore compared to ₹31.76 crore in the same period of the previous year. Sales rose by 13.00% to ₹411.89 crore from ₹364.50 crore year-on-year.
- Q2 FY2024-25 Challenges: The company faced significant challenges in the ethanol sector due to adverse weather and regulatory constraints, leading to a stark decline in production and sales. Despite a 73% surge in sugar sales, overall financial performance suffered, resulting in losses before tax and a decrease in EBITDA.
- Revenue (2024): ₹19.57 billion, a decrease of -9.79% compared to the previous year's ₹21.69 billion.
- Earnings (2024): ₹522.10 million, a decrease of -61.13%.
- P/E (Price-to-Earnings) Ratio: 6.33
- P/B (Price-to-Book) Ratio: 0.77
- Sales Growth (Past 5 years): -10.9% (poor performance).
- Return on Equity (ROE) (Past 3 years): 10.6% (low).
Dhampur Sugar Mills Ltd has a market capitalization of ₹952 crore as of the latest data. Promoter holding has seen a slight decrease, moving from 49.12% in June 2024 to 49.10% as of March 2025. Despite financial challenges, the company remains a significant player in the integrated sugar processing industry.
- 52-Week High Share Price: ₹254.20
- 52-Week Low Share Price: ₹108.85
- Last 12 Months Performance: Share price moved down by 35.99% on BSE.
- Share Buyback: Approved a buyback of shares worth up to ₹20 crore at ₹185 per share, with the record date set for May 23.
- Share Extinguishment: Extinguished 1,081,081 shares at ₹185 each, reducing the paid-up capital to 6.43 crore shares.
Dhampur Sugar Mills is actively pursuing strategic initiatives to stabilize its operations and enhance value:
- Diversification: Management is strategically pivoting towards alternative raw materials for ethanol production, aiming to stabilize cash flow and reduce debt, mitigating reliance on traditional sugarcane molasses.
- Product Innovation: Launched Sulfur-less Sugar in 1 Kg packs under the brand name "Dhampure" in 2000-01, demonstrating its focus on product innovation and diversification.
- Research & Development: Planning to partner with the Central Food and Technology Research Institution-Mysore to manufacture Xanthan from Sugar, exploring new value-added products.
- Subsidiaries: Currently operates two subsidiaries: DSM Sugar Kashipur and DSM Hitech Products.
Dhampur Sugar Mills Limited continues to adapt to changing market conditions while maintaining its position as a significant player in India's integrated sugar processing industry. The company's multi-segment approach and focus on value-added products from sugarcane processing provide diversification benefits, though recent financial performance has been impacted by regulatory changes and market volatility in the ethanol sector. The strategic initiatives indicate a proactive approach to address challenges and explore new growth avenues.
