Sukhjit Starch & Chemicals Limited has informed the Exchange about Investor Presentation
THE SUKHJIT STARCH AND CHEMICALS LIMITED
EVOl VIN(; WITH NATUtE
Ref: SSC/VPF /BSE/2023•24/, t� 0 b
Dt: 07/06/2023
BYE-FILING
To, The General Manager-Listing Department BSE Limited 25th Floor, P.J. Towers, Dalal Street, Fort, MUMBAI- 400 001
,
To, The General Manager-Listing Department The National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Sandra Kurla Complex, Sandra (E), Mumabi- 400 051
Ref: Security' Code: 524542
Ref: Symbol: SUKHJITS
Sub: INVESTOR PRESENTATION
Dear Sir,
Please find enclosed herewith Investor Presentation of The Sukhjit Starch & Chemicals Limited for your information and records. The same is also disseminated on the website of the Company i.e. www.sukhjitgroup.com.
Thanking You,
Yours Faithfully, For THE SUKHJIT STARCH & CHEMICALS LTD
VICE PRESIDENT (FINANCE) & COMPANY SECRETARY
Encl: as above
SARAI ROAD, PHAGWARA DISTTT. KAPURTHALA PUNJAB 144 401, INDIA
T +911824 468800, 260314 F +911824 261669, 262077 E SUKHJIT@SUKHJITGROUP.COM C/N : Ll5321 PBl 944PLC00192S
ISO 900l:200Certlfltd & FSSC:22000 C°""""'1
WWW.SUKHJITGROUP.COM
Investor Presentation | FY23
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sukhjit Starch & Chemicals Limited (the “Company”), have been prepared
solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be
relied on in connection with any contract or binding commitment what so ever.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or
warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this
Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or
any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively
forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and
assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various
international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future
levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and
its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from
results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-
looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party
statements and projections.
Investor Presentation
2
Company Overview
Sukhjit at a glance
75
Years of Excellence
4 Plants
Manufacturing Locations
1,250+
Employees
Investor Presentation
Rs. 1,435 Crs
FY23 - Revenues
Rs. 145 Crs
FY23 - EBITDA
Rs. 70 Crs
FY23 - PAT
4
Sukhjit Starch & Chemicals Ltd is an agro-processing company that specializes in the production of starch and its derivatives. With a rich history as one of India's oldest starch producers and third largest in terms of production, Sukhjit Starch & Chemicals Ltd has forged enduring partnerships with major brands and end users
75 Years of Excellence
Company incorporated in Phagwara, Punjab
Commissioned Nizamabad Unit (Telangana) for manufacturing of Maize Starch & Liquid Glucose
Commissioned plant for manufacturing of Dextrose Anhydrous at Phagwara
Commissioned Malda Unit (West Bengal) for manufacturing of Malze Starch & Liquid Glucose with 150 TPD Malze Grind
Enhanced the capacity of Nizamabed unit from 150 TPD to 250 TPD Maize Grind
Enhanced the capacity of Gurplah unit from 150 TPD to 300 TPD Maize Grind
Highest ever turnover
1943
1982
1985
1993
1996
2000
2002
2007
2009
2013
2014
2020
2023
First indigenous Dextrose Plant in the country at Phagwara (Pb)
First indigenous plant for manufacturing of Sorbitol at Phagwara (Pb)
Enhanced the capacities of Phagwara and Nizamabad units from100 TPD to 150 TPD Maize Grind
Commissioned Gurplah unit HP) with 150 TPD Maize Grind for manufacturing of Starch Liquid 2007 - Glucose, High Maltose Syrup. Malto Dextrin Power, DMH etc
Enhanced the capacity of Malda Unit from 150 TPD to 450 TPD Maize Grind
Commissioning of the New Unit in Punjab with Maize grind Capacity of 600TPD and the Mega Food Park project. Total Cap-ex being around Rs. 350 cr
Investor Presentation
5
Message from MD Desk
“ The year 2021-22 marked a significant period of growth and transformation for Sukhjit, as it solidified its position and advanced its Growth Roadmap. The three waves of the Covid pandemic have imparted valuable lessons to the trade and industry, forcing businesses to adapt by streamlining operations, optimizing resources, and reducing infrastructure. The post-Covid bounce in results demonstrates the immense learning that has taken place during these challenging times.
As part of its Transformation Agenda, Sukhjit has been making changes in its manufacturing and delivery processes to better serve its end users. One noteworthy aspect of this new positioning is the company's commitment to migrate customers in Tier 2 and 3 cities from the unorganized sector to the organized sector. By offering international quality products at affordable Indian prices, Sukhjit has successfully differentiated itself and built loyalty among its customers across the country. The company has also continued to invest in its business, capitalizing on key industry trends to position itself for long-term success. With a widespread footprint across the country, Sukhjit aims to penetrate deeper into the hinterland by leveraging its capacities, world-class customer service, and efficient logistics to ensure affordability.
In today's rapidly evolving world, new products and services driven by innovative technologies are transforming various aspects of our lives. These changes are not limited to the privileged or the evolved; even those at the bottom of the socioeconomic pyramid are willing to pay for convenience, quality, and consistency. Sukhjit recognizes this shift and aims to cater to the evolving needs and preferences of its diverse customer base. In terms of financial performance, the company achieved double-digit growth in comparable net sales in the first quarter. By actively managing customer contracts and addressing higher input costs, Sukhjit's operating teams successfully delivered core sales growth and a stronger specialty mix. The company's new unit in Punjab is operating at high capacities for starch and its derivatives, with plans to achieve full capacity utilization in the near future.
Sukhjit is also focused on expanding its maize processing capacities in two locations, modernizing outdated facilities to meet growing demand. The global environment appears favorable for the starch industry, as its products have become more competitive in international markets due to higher corn costs in major starch-producing countries. Additionally, the company emphasizes the importance of deep customer research to drive profitability and exceed shareholders' expectations.
Around 80 years of experience, Sukhjit is confident that its ongoing transformation will usher in a new phase of growth. Despite the current uncertainties surrounding economic recovery and inflationary pressures, the company remains guided by its core values of hard work, integrity, teamwork, and social commitment. By staying true to its vision and adapting to changing circumstances, Sukhjit aims to prosper and become an even more relevant partner to its customers. The company acknowledges the support of its valued customers, stakeholders, suppliers, business associates, shareholders, and employees in its journey. While the immediate future may present challenges, Sukhjit is committed to creating long-term value for all its stakeholders, guided by its core values and dedication to social responsibility. ”
Sh. K.K SARDANA
Managing Director
Investor Presentation
6
Business Model
Our Strengths
Strong Market Position
Established in 1943, has a strong track record of operations. It has a maize grinding capacity of 1,600 tonne per day (TPD) and approx. 10% share in the domestic market based on installed capacity
R&D Capabilities
We have strong R&D to drive innovation and continuous improvement. We have to develop new formulations, enhance functionalities, and address emerging trends
expertise
Diverse Product Portfolio
We offer a wide range of starch products, incl. Native Starches, Modified Starches and value-added Products like Sorbitol, Monohydrate Dextrose, Anhydrous Dextrose, Maize Gluten, Maize Oil, Cattle/Poultry Feeds etc
Diversified End Users
We cater to diverse sectors like Paper, Packaging, Pharmaceuticals, Personal Care, FMCG and Food & Beverages Industries
Customer- Centric Approach
We have strong customer relationships by understanding their unique needs and providing tailored solutions. We work closely with customers to develop customized starch formulations and offers technical support and expertise to ensure optimal product performance
Quality and food safety standards
We have rigorous quality control measures and adhere to food safety standards. Our starch products stringent undergo thorough testing and meet the highest quality and safety parameters, providing customers with confidence in the reliability and integrity of their products
Reputed Clientele
Our customer profile includes reputed brands such as Dabur India Ltd, Zydus Wellness, Nestle India Ltd, Mars Wrigley, Mondelez, Abbott India Ltd, Marico Ltd etc.
Experienced Management
With decades of experience in the starch industry, We have developed deep expertise and insights into market trends, regulatory requirements, and customer preferences
Producing hydrogen from biogas process effluents
One of the first producer of Hydrogen from biogas generated from process effluents following efficient regulatory approvals purification methods with all concerning product quality & safety protocols
Environmental Commitment
We have invested into state of art facilities to convert its bio- degradable waste into valuable energy which over the years has resulted in savings of petroleum products thereby reducing the company's Carbon footprint significantly
Investor Presentation
8
Product Portfolio (1/3)
h c r a t S e z i a M
− Thickening & Gelling Agent − Texture and Clarity − Binder & Stabilizer − Corn Sweeteners
− Manufacture of Sweeteners − Sizing of Paper and Textile − Food Thickener − Stabilizer − Ethnic Sweets − Manufacture of Modified Starches − Bio-Plastics − Pharmaceutical − Corrugated Board − Bio-Plastics − Frozen Food
e s o c u l G d i u q i L
− Crystallising − Texture Enhancers − Stabilizer − Adjuncts − Fermentation − Sugar Substitute
− Confectionery − Baking − Brewing − Meats − lce Cream − Processed Foods − Jams and Preserves − Canning − Frozen Foods − Dairy Products
% 0 7 l o t i b r o S
− Emollient − Humectants
− Oral hygiene formulation − Cosmetics − Processed Food Industry − Pharmaceutical Industry − Confectionary − Frozen Foods − FMCG / Health care Industry − Paint Industry
Investor Presentation
9
Product Portfolio (2/3)
r e d w o P
n i r t x e D o t l a M
− Stabiliser/Bodying Agents − Sweetener − Carrier/Excipiant − Food Additive
− Indian Sweets − Baby Foods − Instant Foods − Confectionary − Baking − Ice Cream − Diary Products − Processed Foods − Beverage
e t a r d y h o n o M
e s o r t x e D
− Sweetness − Flavor Enhancement − Ferment ability − Glucose-D & Stability − Bulking Agent and Carrier − Instant energy drinks
− Total or partial replacement for sucrose in baking & other dry mixes, canned products, chewing gum, confections, diary products, meats, preserves, carrier for colors and flavours
− Bulking agent for intense sweetners, beverage powders and dry mixes. Tableting excipient in confections
− Source of fermentables in baking, brewing.
vinegars, wines
− Baked goods. Caramel coloring
s u o r d y h n A
e s o r t x e D
− Injectable Glucose − Bulking Agent and Carrier
− Injectable Solution Manufacturing − Saline Solution Manufacturing − Oral Re-Hydrating Agent
Investor Presentation
10
Product Portfolio (3/3)
n e t u l G e z i a M
r e h t O
s t c u d o r P - y B
- High protein content
− Nutritive addition to Cattle feed − Source of bio-diesel
− Poultry Feed − Animal Feed − Herbicide
− Poultry Feed − Cattle Feed − Insecticides − Cooking oil − Printing Ink − Pet Food − Bio diesel
Investor Presentation
11
Diversified End Users
Paper
Textile
Pastries
Ice cream
Cosmetics
Flavours and Fragrance
Tooth Paste
Health Care Products
Pharmaceuticals
Candies
Beverages
Biodegradable packaging
Investor Presentation
12
Reputed Clientele (1/2)
We have clients from diversified industries and we help them to build their worldwide presence
Investor Presentation
13
Reputed Clientele (2/2)
We have clients from diversified industries and we help them to build their worldwide presence
Investor Presentation
14
Strategically Located Plants
Rehana Jattan Unit Punjab
Gurplah Unit, Himachal Pradesh
Malda Unit West Bengal
- Manufacturing Facilities
- Registered Office
Nizamabad unit, Telangana
Locational Advantage
✓ Strategic location of manufacturing units in
proximity to maize producing regions
✓ Access to Skilled Labor
✓ Access to transportation infrastructure
✓ Near consumption centers which enables in
quicker turnaround time and efficiencies in
supply chain
Investor Presentation
15
State of Art Manufacturing Facilities
Phagwara (Rehana Jattan)
Nizamabad unit
Malda Unit
Gurplah Unit
Capacity – 600 TPD
Capacity – 250 TPD
Capacity – 450 TPD
Capacity – 300 TPD
Products Manufactured
Products Manufactured
Products Manufactured
Products Manufactured
Maize Starch, Monohydrate Dextrose, Sorbitol, Anhydrous Dextrose, Maize Gluten, Maize oil and other By-products
Maize Starch, Liquid Glucose, Maize Gluten, Maize oil, Cattle feed and other By- products
Maize Starch, Liquid Glucose, Monohydrate Dextrose, Maize Gluten, Maize germ and other By-products
Maize Starch, Liquid Glucose, Monohydrate Dextrose, Malto Dextrin Powder, Maize Gluten, Maize germ and other By-products
Investor Presentation
16
Certifications
t i
n U ) n a t t a J a n a h e R ( a r a w g a h P
t i n U a d l a M
Investor Presentation
17
Certifications
t i n u d a b a m a z i N
t i
n U h a l p r u G
Investor Presentation
18
Sukhjit Mega Food Park – Our New Initiative
Sukhjit mega food park was envisioned under active encouragement by the Government of India and Government of Punjab to aid in their efforts to help with agriculture diversification and ensure processing of agro production in Punjab.
Mega food park has come up on 55 acres of land in village Rehana Jattan, Tehsil Phagwara. This will help in exploring fresh possibilities for crop diversification and encouraging less water intensive crops to conserve the depleting water table of the State.
Objective
Facilities at Sukhjit Mega Food Park
To minimize food wastage and improve farm incomes
Developed Industrial Plots
Power, steam, water supply and wastewater treatment
Advantage
Being a strategic location with access to abundant agricultural produce
Excellent connectivity to the NCR region and rail, road & air connectivity to this food park is an ideal investment destination
Large storage facilities in the form of silos and dry warehouses totaling 27,000 tons
Sorting grading systems have been set up for use of grain processing industries for dry raw material and finished products
Set up vegetable processing 2 tons per hour IQF line for processing peas/cauliflower or other vegetable crops has been set up with palletized deep freeze rooms of 2000 tons capacity in multiple chambers modern
Mezzanine assisted cold storage of 3 000 tons has been set up with a scientific pre-cooling anti- chamber room
Offers many other facilities such as a quality control laboratory, standard design factory sheds etc for the food processing Industry
Investor Presentation
19
Financial Performance
Annual Financial Highlights
Revenue from operations (Rs. Crs.)
EBITDA (Rs. Crs.) & EBITDA Margin
797
699
1,157
1,435
7.1%
9.2%
13.1%
151
10.0%
143
FY20
FY21
FY22
FY23
57
FY20
64
FY21
FY22
FY23
Profit before Tax (Rs. Crs.) & PBT Margin
Profit after Tax (Rs. Crs.) & PAT Margin
4.1%
4.3%
9.3%
107
6.5%
93
33
30
4.1%
3.3%
33
23
6.7%
77
4.9%
70
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Investor Presentation
21
Key Financial Ratios
ROE (%)
ROCE (%)
18
14
23
19
10
7
10
9
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Working Capital Days
Net Debt / Equity (x)
76
64
50
37
0.46
0.42
0.25
0.18
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Investor Presentation
22
Standalone Profit & Loss Statement
Profit & Loss Statement (Rs. Cr.)
Revenue
Cost of Materials Consumed
Changes in Inventory, WIP, Finished Goods
Employee Expenses
Other Expenses
EBITDA
EBITDA Margin %
Depreciation
Finance Cost
Other Income
PBT
Tax Expense
PAT
PAT Margin %
EPS
FY22
1,156.8
737.5
12.7
52.4
202.8
151.4
13.1%
24.7
20.9
1.6
107.4
30.1
77.3
6.7%
49.47
FY23
1435.3
1,009.8
-24.5
57.7
249.2
142.9
10.0%
26.6
25.3
1.7
92.7
22.6
70.1
4.9%
44.9
Investor Presentation
23
Standalone Balance sheet
Particulars (In Rs Crs.)
EQUITY AND LIABLITIES
Equity
Equity share capital
Other Equity
Total equity
Non-current liabilities
Financial liabilities
i) Borrowings
Lease liabilities
Government Grant(s)
Deferred tax liabilities
Other non-current liabilities
Total non-current liablities
Current liablities
Financial liabilities
i) Borrowings
Trade payables
(i) Total outstanding dues of MSME
(ii) Total outstanding dues of creditors other than MSME
Other Current Liabilities
Current Tax Liabilities (net)
Total current liablities
Total liablities
Total equity & liabilities
Investor Presentation
FY22
FY23
Particulars (In Rs Crs.)
FY22
FY23
15.6
409.2
424.8
116.0
4.0
0.7
25.3
17.0
163.0
15.6
468.9
484.5
100.6
5.2
0.7
30.3
16.2
153.0
128.5
195.0
3.8
43.0
17.5
2.1
194.9
357.9
782.7
3.6
49.4
19.3
0.0
267.3
420.3
904.8
ASSETS
Non-Current assets
Property, Plant and Equipment
357.1
408.2
Rights to use
Capital work - in - progress
Investment Property
Other Intangible assets
Financial Assets:
i) Investments
Other non-current assets
Total non-current assets
Current assets
Inventories
Financial Assets:
i) Investments
ii)Trade Receivables
iii) Cash & Bank Balances
iv)Bank balances other than iii. above
v)Other Loan & Advances
Income Tax Asset (Net)
Other current assets
Total current assets
Total Assets
3.3
63.9
20.4
0.0
38.5
24.2
507.3
96.1
65.9
67.0
1.1
10.7
32.5
0.0
2.1
275.4
782.7
4.1
16.4
21.3
0.0
38.5
24.1
512.5
167.7
77.5
80.5
1.3
11.0
38.3
1.2
14.9
392.3
904.8
24
Dividend Track Record
Final
Interim
Dividend
Dividend as % of Face Value
Issue Bonus Shares - 1:1
75%
65%
100%
80%
50%
50%
50%
35%
30%*
20%*
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
Rs. 3.5
Rs. 5
Rs. 5
Rs. 5
Rs. 6.5
Rs. 7.5
Rs. 2
Rs. 3
Rs. 10
Rs. 8
* Note : Covid period
Investor Presentation
25
Corporate Social Responsibility
Investor Presentation
Promoting Education
The Company has promoted the establishment of various educational Institutions which, under its patronage have been running successfully like a Post Graduate College for women with latest and “state of the art” Infrastructural facilities with all concessions to the needy and poor students. Seven other educational institutions including one B.Ed. college for women and six higher secondary schools imparting quality education to students with due concessions to all the students from economically backward and rural areas.
Healthcare and Dental Camps
The objective of the company is to make affordable healthcare facilities available to communities around it by forging strategic partnerships with organizations having expertise in the requisite areas. Hence, the company has joined hands with many organizations to promote health & well- being of needy and poor people and some of which includes : blood donation awareness camps, donates free blood to number of Thalassemia patients on a regular basis, Free eye care and operation camps, Cancer awareness camps etc
Corporate Social Responsibility
Blankets and Ration Distribution
Tree Plantation
• Distribution of free ration and blankets etc. to the poor and needy
•
The Company has diversified its CSR activities towards ensuring environmental sustainability, awareness camps for cleanliness in line with Swatch Bharat Abhiyan, tree plantation and many more
Investor Presentation
27
Thank you
Company :
Investor Relations Advisors :
Sukhjit Starch & Chemicals Ltd. L15321PB1944PLC001925 www.sukhjitgroup.com
Mr. Aman Setia amansetia@sukhjitgroup.com
Orient Capital (a division of Link Group)
Mr. Bhavya Shah +91 80827 48577 bhavya.shah@linkintime.co.in
Mr. Sumeet Khaitan +91 70213 20701 Sumeet.khaitan@linkintime.co.in