INTRODUCTION Triveni industries can be best described as a technology-focused, sugarplus company.

Through a national blend of technology and human capital they deliver high quality products and end to end solutions to the customers globally. From a humble beginning in 1930s we have transformed ourselves into an INR 23 billion company through an interesting bled of technology, people and entrepreneurial spirit. We have a strong financial position, which we believe will enable us to finance our capacity expansion plans. As of March 31, 2005, we had a long-term debt to equity ratio of 0.72: 1 and total debt to equity ratio of 2.74:1. In fiscal 2005, we have net cash flow from operating activities of Rs. 1,414.42 million. PRODUCTS SHAGUN SUGAR Shagun is a superior quality product of Triveni Engineering & industries Ltd., a pioneer in the sugar industry since 1932. One of the largest manufacturers of sugar, Triveni brings you its best sugar, manufactured with state-of-the-art technology imported from UK & Australia. Shagun is made from the juiciest sugarcanes and is processed in a completely hands-free and sterile environment. In addition the unique double microfiltration process removes the minutest of foreign particles, to give you unparalleled purity. Shagun is packed in moisture free packs, giving you free flowing and healthy crystal sugar.

SHAGUN POHA Shagun Poha is made from the selected quality paddy grains using the state-of-the-art hygienic process that secures the nutrient value of every grain. Careful processing ensures that every grain is ideal in colour and taste. Special care is taken to offer you superior Poha that stays fresh for long. That is why, Shagun Poha is highly recommended for making Poha delicacies and lots more.

SHAGUN MAIDA Shagun Maida comes with the guarantee of purity. Special care is taken to ensure that Shagun Maida is consistent and stays fresh for a longer period. Shagun Maida is made from the best quality ripened golden wheat using a state-of-the-art hygienic process which ensures that the dough is thick and easy-to-use. Thats why, Shagun Maida is highly recommended for making delicacies for all occasions.

SHAGUN DALIYA Shagun Daliya is made from the selected quality golden wheat grains using the state-of-the-art hygienic process that secures the nutrient value of every grain. Careful processing ensures that there is no loss of fibre and every grain is uniform in colour and taste. . Special care is taken to offer you superior Daliya that is lump-free and stays for long.

SHAGUN ATTA Shagun Atta is made from the selected quality golden wheat grains using the state-of-the-art hygienic process that secures the nutrient value of every grain. Special care is taken to offer you superior atta, that is lump-

free and stays for long. Shagun atta absorbs more water, which ensures that rotis remain soft for long (under normal conditions).

SHAGUN BESAN Shagun Besan comes with the guarantee of purity. Special care is taken to ensure that the product is free flowing, consistent and stays fresh for a longer period. Shagun Besan is made from the best quality chana dal using a state-of-the-art hygienic process, which ensures that the batter is thick and easy to use. Thats why Shagun Besan is highly recommended for making delicacies for all occasions.

SHAGUN SOOJI Shagun Sooji comes with the guarantee of purity. Special care is taken to ensure that the product is free flowing, consistent and stays fresh for a

longer period. Shagun Sooji is made from the best quality ripened golden wheat using a state-of-the-art hygienic process. Thats why, Shagun Sooji is highly recommended for making delicacies for all occasions.

SUGAR PRODUCTION The sugar industry in India is highly fragmented with over 500 sugar factories. We are amongst the three largest producers of sugar in India based on sugar production in Sugar Year 2003-2004 derived from ISMA Working Results of Sugar Factories in India, 2003-2004. We manufactured 0.38 million tonnes of sugar in the Sugar Year 2005. We make timely payments to sugarcane farmers and have built excellent relationships and goodwill with them, which is an important factor in our industry. We have a good record of payments to farmers for sugarcane despite the cyclical nature of the sugar industry and have strong ties with approximately 167,000 sugarcane farmers. In order to facilitate the sale of sugarcane to us by the sugarcane farmers, we have established a extensive network of more than 350 collection centers in the state of Uttar Pradesh, where the sugarcane is collected by us and payments are made to farmers. These collection centers are located in

our sugarcane area and hence, the farmer is not required to bring his crop to our factory gates.

FLOW CHART ON SUGAR PRODUCTION

BUSINESS OVERVIEW Triveni's association with the Sugar Industry is as old as the Industry itself. In pre- independence India, the promoters of what is now the Triveni Group established several sugar factories in pre independent India. Even now, Triveni is the pre- eminent name in the Indian sugar industry. The sugar produced at Triveni's factories is direct consumption

plantation white low ICUMSA (an International method for determining colour value of sugar, lower value means whiter sugar), bold grain sugar which commands premium in the market. A lot of emphasis is placed on the quality control procedures and quality of sugar produced in the factories.At all the factories, emphasis is on usage of energy efficient systems, modern technology and R & D for better operations and for improved per hectare sugar output. As a result of Triveni's tie up with Sugar Research International of Australia, the group factories have access to modern equipments & process knowhow. The cane development activities taken up by the factories are regarded to be amongst the best in the industry. Group has been pioneer in using modern techniques like Satellite tracking for getting information on area in its command for enabling decisions on which variety to be propagated in which area. Factory has huge data base on individual farmer's field data (total cane area, past supplies, ratoon and plant cane acreage, soil details, land type details etc.) to take prudent decisions on cane development.

CRUSHING CAPACITY & OUTPUT As of .., 2007, our sugar mill located at Milak Narayanpur had crushing capacity of 6500 TCD. Sugar production is dependent upon the quantity of sugarcane available for crushing and the recovery percentage of sugar from sugarcane. In India, the production commences in October and generally ceases by the end of April by which time the sugarcane available from the cane areas is exhausted. The duration of the crushing period also determines the amount of sugar that is produced.

PLANT EQUIPMENT PLANT EQUIPMENT I. Juice Extraction A. Cane Handling & Conveying 1. Cane Carrier 2. Belt Conveyor 3. Cane Unloader Qty.(No.) Width Length Power

1 2300mm 63500mm 75 KW 1 2300mm 22000mm 30 KW 3 Nos. 05 MT Each Hydraulic Grab

B. Preparatory Devices 1. Cane Chopper 2. Cane leveler 3. Fibrizor

Power(K W) 250 300+300 750 + 750

Nos. of Knives/Hammers 48 56 132

Swing dia/RPM 1600/292 1600/585 2200/750

C. MILLS Mills 1 to 4 with UFR & 750 KW DC Motor & DC Drive

No. of Roller 4

Roller Dia mm 1100

Length in mm 2032

II. CLARIFICATION 1. Measurement of weighment Raw Mass flow meter capacity 300 MT per hour Juice 2. Juice Heaters Vertical Juice Heaters. 6 nos. each having 350 sq. meter Heating Surface area 3 no. PHE for clear Juice heating 3. Juice One Nos. Continuous type of 4.2 mtr. dia of Sulphitation cap - 350 HL 4. Settlers 1 No. SRI Single Tray Clarifier of 8 mtr. dia 5. Sulphur Gas 2 Nos. film type -200 Kg/hr. each of Digital Plant: Utilities Make 1 no conventional type 150 kg/hr of Digital Utilities make 6. Filtration One No. Vacuum filter of 4.25 mtr. dia x 11 mtr. length each III. EVAPORATION 1. Evaporator Section (A). Semi Kestner H.S. in M 6 mtr. long tube (B). Semi Kestner H.S. in M 4 mtr. long tube (C). Evaporator 3rd body (D). Evaporator 4rd body (E). Evaporator 5rd body 2. Syrup Treatment Plant Heating surface in sq.mtr. 3200 3200 1400 1000 1000 Two Nos. Continuous type syrup sulphitors of working capacity 200 H.L. each

IV. VACUUM PAN STATION No. of Pans : 8 No. Calandria type and 01 No. continuous type for BMassecuite No. of Pans 1 Strike Capacity (MT) Volume in H.L. Heating Surface ( in sq. mtr.) 2 3 4 5 6 80 7 60 8 60 CVP 'B' 25

100 100 100 80 80

700 700 700 560 560 560 420 464 464 464 372 372 372 244

420 244

700 665

FACILITIES The consistent performance of the factory has been due to the deployment of modern equipment designed in collaboration of Sugar Research International of Australia, like Continuous Vacuum Pan for energy (steam & power) efficiency & syrup clarification systems for sugar quality, which has allowed the unit to achieve better operational parameters. The technical efficiencies achieved by the plant are amongst the best in the state. The branded sugar of Triveni Shagun is packaged in a state-of-the-art sugar packaging section located in the sugar factory premises. The sugar packaging section is considered to be the best designed sugar packaging sections amongst all the players in branded sugar business in India. The factory has about 36159 hectare cane area and deals with approx. 47,668 farmers to meet its requirement of sugar cane. Apart from the cane purchased at the factory gate, cane is also procured from 161 cane purchase out-centres.

TECHNOLOGY In the year 1947-48, the sugar production process was converted to Double Carbonation Double Sulphitation with the objective of improving the quality of the product. This process continued till 19901991 season. Due to environmental considerations, fast depletion of limestone resources in the Doon valley and unavoidable generation of liquid effluent, the process was again changed to Double Sulphitation in 1991. Some of the recent additions in plant & machinery include

New milling tandem with 4 mills with individual DC drive installed

In Co-generation 2 high pressure boilers 87 ata and high pressure power turbine have been installed Rotary screens Continuous vacuum pans for B & C-massecuite boiling Syrup clarification system Short Retention Clarification of SRI, Australia High capacity DC motor driven centrifugals Plate heat exchangers Cooling tower cell Automation of mills, boilers, continuous vacuum pans & clarification sysytem based on Distributed Control System of Tata Honeywell and steam flow meters

AUTOMATION AND MODERN TECHNOLOGY

Our strong position in sugar production is a direct result of our emphasis on the usage of modern technology, energy efficient systems and research and development. Our subsidiary, Triveni SRI has an agreement with SRI, which enables us to equip our plants with modern equipments and process know-how. We have installed Continuous Vacuum Pans (CVPs) developed by us in association with SRI at our Khatauli and Deoband sugar mills. These CVPs consume less steam for massecuite boiling and are therefore more efficient. We have also installed a Syrup Clarification System (SCS) at Deoband and Khatauli sugar mills for improvement in quality of the sugar. We are also in the process of installing a Short Retention Clarifier (SRC) at Khatauli sugar mill and plan to use the same in the new plants. In a normal clarifier, juice is retained for approximately 150 minutes while the SRC, takes 30 minutes for the same. The reduced time prevents inversion of sugar and thereby improves sugar recovery and quality. At our proposed Sabitgarh unit we plan to use VFDs to rotate the mills, which will reduce energy consumption and minimise energy requirement at lower operating load.

Triveni SRI Limited, a Triveni Group Company, under a License Agreement with Sugar Research International, offers the latest models available to the Australian industry, such as Clarifiers, Continuous Vacuum Pans, Mill Control Systems, Swirl Burner Combustion System for use in the Indian Sugar Industry. Some of the equipments designed by SRI and their benefits in short are as mentioned below - Continuous vacuum pans -for steam efficiency - Short retention clarifier -for reduction in sugar losses - Syrup clarifier -for improvement in sugar quality

QUALITY Sustained transformation & enhancement of quality delivery is an integral belief that powers our growth and is the guiding principle for a truly exceptional customer experience. A rational blend of determined intentions, focused efforts, intelligent direction and skillful execution offers us a strong platform to deliver world-class products and solutions to our customers. The commercial grading of sugar in India is based on grain size and colour categories. Currently 3-grain sizes and 3 colour series are identified. GRADE L M S GRAIN SIZE > 1.70 - mm 1.18 - 1.70 mm 0.60 - 1.18 mm APPROX. ICUMSA COLOUR UNITS < 100 100-150 >150

COLOUR 31 30 29

We have institutionalized quality in everything that we do. From processes to people to products, focus on quality touches every constituent of our organization. To realize our goal of being a customerfocused, truly global corporation, we have adopted quality enhancement practice by introducing Six Sigma, Quality Management System (QMS) and Total Quality Management (TQM) initiatives. We lay emphasis on continuous improvement and performance

excellence to ensure high standards of quality in our products and solutions. We also focus on developing a quality management system that is designed to facilitate continual improvement, stimulate efficiency and enhance our customers' experience with our products and solutions. INVENTORY CONTROL It is very important that sugarcane of the appropriate variety is available to our sugar mills at the appropriate time and in sufficient quantities. Hence, sugarcane procurement and development are fundamental to our sugar business. In view of the same, we have a separate department with experienced personnel, who handle sugarcane procurement and sugarcane development. In the state of Uttar Pradesh, sugarcane is procured through cooperative societies formed by sugarcane growers in the cane area. The sugarcane co-operative societies, based on their estimates of sugarcane production by their members enter into agreements with us for the supply of identified quantities of sugarcane at a price determined in accordance with applicable laws. This enables us to get an estimate of the sugarcane available for crushing and plan our operations accordingly. Our sugarcane development programme is planned to, inter alia, educate the farmers regarding modern agricultural practices in sugarcane cultivation, supply of seeds, encourage replacement of inferior sugarcane varieties with varieties which are high yielding, have high sucrose content and are early maturing, encourage measures to eliminate diseases and insects/pests in sugarcane, recommend fertilisers based on soil testing, contributing for construction and repair of link roads and culverts, maintenance of drainage systems, etc, for the development of infrastructure to promote sugarcane cultivation. We use information technology for classification and indenting of sugarcane in our sugarcane procurement system. Such systems enable us to access details about the land holdings, area under sugarcane cultivation, last few years supply of sugarcane to the factory, etc, which

are used to plan sugarcane procurement and sugarcane development. Farmers are advised on sowing of the sugarcane varieties based on details collected by us on land type, soil details, etc. USUAGE OF BYPRODUCT Molasses, the by-product generated during the manufacture of sugar is fermented and distilled and variants of alcohol are manufactured. The 160,000 litre distillery unit, with state of the art equipment and biomethanation process, is located at Muzaffarnagar which is equidistant from two of our major sugar manufacturing facilities of Khatauli & Deoband. This will ensure security of raw material. CUSTOMER SEGMENTATION The distillery business group caters to three main segments:

Used in Industrial applications Used in Potable liquor manufacturing Used as a Fuel - Ethanol

CUSTOMER ACQUISITION The company is already supplying to all the leading customers in the abovementioned first two segments. Its products have been very well accepted as they are meeting all the specifications. Major volume of ENA is being supplied to united spirits from the beginning. FUEL ETHANOL Company has 150 KLPD Ethanol plant at Muzaffarnagar. It has started supplying Ethanol to oil marketing company from Dec'10 onwards under the 5% blending programme of petroleum ministry. Quality of the product has been well accepted in the market.

COGENERATION In a sugar mill, bagasse, which is a by-product, is used for production of electricity and steam through a co-generation plant. Co-generation plants are used to produce two forms of useful energy simultaneously i.e. electric power and steam, with the surplus electric power being supplied to the power distribution company(ies). While we have had captive power plants in our sugar mills for a number of years, we started the cogeneration of electricity with the commissioning of the new cogenerating plant in Deoband on December 5, 2004. This facility has a capacity of 22.0 MW and the surplus electric power is being supplied to Uttar Pradesh Power Corporation Limited ("UPPCL") under a power purchase agreement for a period of 10 years. In the Khatauli unit, in 2005, a 23 MW co-generation unit was set up as phase 1 while in 2006, another 23 MW cogeneration facility was set up as Phase II. The aggregate cogeneration capacity as on date is 68 MW out of which approx. 43-45 MW of electricity is exported to the grid. FACILITIES OF COGENERATION
Triveni is operating a 14,000 TCD capacity sugar unit at Deoband in District Saharanpur, Uttar Pradesh. As a result of modernisation activity taken up at Deoband, there was substantial reduction in process steam consumption and therefore increased availablity of bagasse. It was decided to use the additional savings of bagasse as result of the modernisation of the plant synergitically in a high pressure & temperature efficient cogeneration power plant at Deoband. The plant has been installed nearby the existing sugar factory and suitable interconnections have been made to use the exhaust steam & electricity from the cogen plant to the sugar factory & fuel conveyors for conveying bagasse from the sugar factory to the cogen plant. Deoband sugar unit is located in high cane intensity western UP region and therefore has assured availability of raw material (Sugarcane) for crushing and therefore assured availability of bagasse to run the cogen plant. The plant & machinery of the cogeneration plant at Deoband consists of the following

120 tph 87 ata/515 degree C high pressure/temperature boiler 22 MW double extraction condensing type TG set

All auxilliaries (Includes cooling towers, water treatment plant, fuel & ash handling system, power evacuation system among others)

The cogen plant at Deoband was commissioned on 5th of December 2004. The surplus power (after meeting the sugar factory's requirement and cogeneration plant's in-house requirement) is exported to the UPPCL, for which Triveni has a Power Purchase Agreement