History of Bajaj Hindusthan Sugar Limited (BHSL)

_x000D_ Incorporated on November 23, 1931, Bajaj Hindusthan Sugar Limited (BHSL) is one of the prominent sugar and ethanol manufacturing companies in India. The company is a part of the Bajaj Group and is headquartered in Mumbai. BHSL was formerly known as Hindusthan Sugar Mills Limited. _x000D_ _x000D_ Bajaj Hindusthan Sugar Limited has 14 sugar plants in India located in Uttar Pradesh (UP). These plants collectively have the capacity to crush 1,36,000 tonnes of sugarcane daily and distil 800 kilolitres of alcohol per day. BHSL is also a major player in ethanol production, pioneering India's "Fuel Ethanol" program and manufacturing about 38 million litres of ethanol annually. To meet the growing demand for ethanol, the company has expanded its manufacturing capacity to approximately 218 million litres per year._x000D_ _x000D_ Along with ethanol and sugar manufacturing, the company generates about 430 MW of power from the bagasse produced at its sugar mills. About 100 MW is supplied to the UP State grid. It also operates coal-fired power plants, which produce another 450 MW of power for the state grid. _x000D_ _x000D_ In 2016, the company was recognised with the ‘Best Enterprises Award’ from the Europe Business Assembly._x000D_

Business Segments of Bajaj Hindusthan Sugar Limited

_x000D_ The business segments of Bajaj Hindusthan Sugar are divided into different products, such as:_x000D_

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• Sugar Manufacturing Process: This involves the process of sugar manufacturing from sugar cane. 
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• By-products of Sugar Manufacturing: The by-products of sugar manufacturing include molasses, bagasse, fly ash and press mud. All these products are re-used for other purposes like firewood, power generation, yeast, etc., without any wastage. 
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• Bio-compost or Bio-manure: Bajaj Bhu Mahashakti bio-manure is manufactured from the by-products of sugar manufacturing. This is used as a natural fertiliser in farms. 
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_x000D_ As of March 2023, the subsidiary companies under Bajaj Hindusthan Sugar Limited include: _x000D_ _x000D_ - Bajaj Aviation Private Limited (BAPL): This is a wholly-owned subsidiary of BHSL that provides air transport services via Air Craft – Falcon LX 2000. _x000D_ _x000D_ - Bajaj Power Generation Private Limited (BPGPL): This wholly-owned subsidiary is involved in the energy sector. _x000D_ _x000D_ - Phenil Sugar Limited (PSL): BHSL holds a stake of 98.01% in PSL, which manufactures sugar. _x000D_ _x000D_ - Bajaj Hindusthan (Singapore) Private Limited (BHSPL): This is a wholly-owned subsidiary of BHSL that is involved in commodities trading and holds coal mines in Indonesia._x000D_

Key Personalities of Bajaj Hindusthan Sugar Limited

_x000D_ Kushagra Bajaj, Non-Executive Chairman_x000D_ _x000D_ Kushagra Bajaj is the non-executive chairman of Bajaj Hindusthan Sugar Limited. He is one of the youngest and most promising business leaders in India, who is operating a diverse set of companies with sizeable interests in the Sugar, FMCG and Power sectors. He did his B.Sc. in Economics, Political Philosophy, and Finance from Carnegie Mellon and his M.Sc. in Marketing from Northwestern University (Chicago). _x000D_ _x000D_ Ajay Kumar Sharma, Managing Director _x000D_ _x000D_ Ajay Kapur joined BHSL in 2016. He has over 30 years of experience in cane procurement and development, supply chain management and operations, liaising with farmers and government officials. Before joining BHSL, he worked at Triveni Engineering Works, SBEC (Modi Group), Mawana Sugar, RBNS Sugar, and Modi Sugar. He is an LLB and holds a Master’s degree in Agriculture. _x000D_

Corporate Actions of Bajaj Hindusthan Sugar Limited

_x000D_ In 2011, BHSL announced a rights issue of a 2:1 ratio at a premium ₹35 per share. The ex-date was September 21, 2011, and the record date was September 22, 2011. _x000D_

SWOT Analysis of Bajaj Hindusthan Sugar Limited

_x000D_ Strengths_x000D_

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• The company is a part of the well-known Bajaj Group. 
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• The company has a huge network of suppliers all over the country in both urban and rural regions.  
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_x000D_ Weakness_x000D_

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• The business model, sugar manufacturing, can be copied easily. The sugar manufactured at a local plant in a region is readily available at the local stores. 
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_x000D_ Opportunities _x000D_

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• The company can look into expanding its business outside the country as they are available only in India now. 
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_x000D_ Threats _x000D_

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• The sugar industry is subjected to several risks, including environment, government policies, raw material pricing, etc. 
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• The sugar demand and supply dynamics keep changing.
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