Vol. 8, No.

1 October 2012-March 2013

Complimentary copy (For private circulation only)

A quarterly newsletter of Simbhaoli Sugars Limited

Chief Executive Officers Message

The 2012-13 crushing season was a mixed bag for the industry. It not only witnessed a spate of industry friendly policies; it also saw many government promises and industry wishes remaining unfulfilled. The state of Uttar Pradesh announced a whopping increase in SAP by ` 40 per quintal, which catapulted cane prices to the range of ` 280-290 per quintal, and impacted cost of production by ` 5 per kg. The sugar prices, however, remained subdued on account of better production forecasts and continuing imports. The promised hike in export duty remained elusive; and with production estimate at 24.8 MT, sugar prices dropped by ` 3 per kg since the beginning of the cane season. The central government, in an announcement made in April 2013, took the long overdue step to unshackle the sugar industry from the burden of levy sugar. Sugar mills have now been freed of the obligation to sell a tenth of their produce at a lower price through the public distribution system. This is a welcome move, which will benefit both millers and farmers. Millers will be able to control their interest outgo and improve cash flows and clear cane arrears, providing much needed relief to farmers. Cane-side reforms, however, were postponed and ethanol pricing policy for 2013-14 was left to state governments to formulate and implement. Till the time of going to the press, this policy has not been announced.

Highlights of Financial Results

For the period ended December 31, 2012
! Consolidated net sales at ` 2823 mn, higher by 51% ! Standalone net sales at ` 2562 mn, higher by 54% ! Incurred a loss of ` 208 mn on account of high cost of production ! Average realization at ` 348 mn, higher by 13.3%

Companys Power Businesses Transferred to Simbhaoli Power Limited

As a part of its business restructuring exercise, Simbhaoli Sugars Limited (SSL) has transferred its existing power businesses situated at Simbhaoli and Chilwaria on a slump sale basis to Simbhaoli Power Limited (SPL) a Special Purpose Vehicle set up for this purpose. The transfer took place with effect from January 26, 2013 at a fair market valuation of ` 159.9 crore. Prior to this, SSL entered into a joint venture with Sindicatum Sustainable Resources Group (Sindicatum), a global developer and operator of clean energy projects. Sindicatum, through its subsidiary company Sindicatum Captive Energy Singapore Pte Limited, Singapore had agreed to acquire 49% of the share capital in SPL. SPL will implement an expansion plan to enhance its aggregate power generation capacity from 52 MW to 85 MW and is working with banks to finalise lending terms. The expansion will enhance the earnings of SSL from the power business and improve its financial health, as a large capital inflow will be received by SSL as well.

O V E R V I E W

While the future of the industry rests on the ability of organizations to manage costs; improvement in cane yield, sugar recovery and quality are key for its survival and growth. Your Companys power expansion project - a joint venture with Sindicatum Sustainable Resources Group - has kicked off and is making good progress. The Kandla refinery, a joint venture project with ED&F Man is also progressing well. I am optimistic that the coming months will see government policies that bring back relief and succour for the sugar industry. Best wishes,

Dr. G.S.C. Rao

75th Annual General Meeting

Boiler Firing Ceremony

The 75th Annual General Meeting of Simbhaoli Sugars Limited was held at Simbhaoli plant on 25th October, 2012.

The boiler firing ceremony was held on 17th October, 2012.

SIMBHAOLI SUGARS
Specialty Sugars Potable Liquor Ethanol Power

Vol. 8, No. 1, October2012-March 2013

TRUST PROMOTIONAL ACTIVITIES

Numaish Exhibition, Hyderabad

Hyper-market promotion in Mauritius

Simbhaoli Sugars participated in the month long (January-February) exhibition at Hyderabad. The objectives were to build awareness and promote products under the Trust brand umbrella and undertake an extensive taste sampling exercise for those who had not experienced our products. The Trust stall displayed the entire range of speciality sugars and Sipp instant fruit drink mix. The stall attracted huge crowds; and generated very good sales of all the products.

Trust specialty products on display at Jumbo Casino and Station Phoneix, two major hyper-markets in Port Louis, Mauritius.

Trust products are now available at the following online stores; and delivered within 3 hours!
www.ykartt.com www.call2us.com Amritsar www.zopnow.com www.freshoaks.com www.tolbazaar.com Bangalore Gurgaon www.eramukaka.com www.drivemart.com Chandigarh Region

32nd India International Trade Fair

Simbhaoli Sugars showcased its Trust range of speciality sugars and instant fruit drink mix at the 32nd India International Trade Fair at the Pragati Maidan, Delhi. The event proved to be very useful for undertaking an extensive brand building and sales promotion drive including wet sampling, which saw a positive response from a large cross-section of the Delhi public that visited the fair.

www.gopeppers.com Ghaziabad & Noida

www.cartwings.com NCR

Kandla Sugar Refinery Update

28th Aahar International Food & Hospitality Fair

Work on the Uniworld Greenfield refinery at Kandla is proceeding as per schedule. Trial runs are expected to take place in the first week of July, 2013; and commercial production is slated to commence in September, 2013.

Extra Ordinary Annual General Meeting

Trust showcased its range of speciality sugar and instant fruit-drink mix at the annual 5-day Aahar International Food & Hospitality Fair held at Pragati Maidan, Delhi. The Trust stall saw huge footfalls, resulting in good sales, sampling and business enquiries. The event also helped build awareness amongst a cross-section of the Delhi public.

The Extra Ordinary General Meeting of Simbhaoli Sugars Limited was held on 12th March, 2013 at the Simbhaoli plant.

SIMBHAOLI SUGARS
Specialty Sugars Potable Liquor Ethanol Power

Vol. 8, No. 1, October2012-March 2013

PRAVDA PROMOTIONAL ACTIVITY

INTEGRATED CASETECH NEWS

! Awarded operation and maintenance contract for one of the largest business houses in Myanmar. ! Awarded an advisory contract for carrying out efficiency audit of sugar factories in Vietnam. Our team visited Vietnam for this assignment. ! Won the contract for rehabilitation and running of a sugar complex in Zanzibar. ! Awarded contract for KPR Sugar Industries in Karnataka, which includes stabilization of the manufacturing process, improving the sugar quality and de-bottlenecking of the plant. ! Senior officials of Thailands largest sugar manufacturing company, Mitr Phol group, visited our manufacturing facility and had detailed discussions about technology transfer in the field of sugar refining and energy conservation. ! Bagged gap analysis study assignment for sugar mills in Maharashtra and Bihar. ! The Indonesian delegation visited Simbhaoli plant and evinced interest in engaging our consulting services for improving the efficiency of their factories. ! Assigned to completely overhaul and maintain a sugar plant in Tanzania.

FCC Club of South Asia

Hotel Plazo Sec-29, Gurgaon

DLF Club, Gurgaon

ATS Hotel, Gurgaon

Pullman Hotel Restro & Bar, Gurgaon

! Conducted blind testing and

free sampling at Hotel Aman, Gurgaon. ! Distributed free miniature bottles at Foreign Correspondents Club of South Asia, Delhi. Big Bazar gift voucher coupons for sales men ! Branding activity at Hotel Plazo, Gurgaon during the run up to Christmas and New Year Eve celebrations. ! Big Bazaar gift voucher coupon scheme for our retail sales staff.

3 Self-Development Workshops at Simbhaoli

Light-My-Fire Workshops at Chilwaria

Mr. Arvind Kaul facilitated a series of Light-My-Fire workshops for Chilwaria executives in September, October and November of last year. Mr. I. S. Bhatia and Mr. Rooprajinder Singh were present on all the occasions. The aim of these workshops was to help executives introspect as individuals and team players. The idea being that they identify and reinforce their core strengths; and at the same time, evolve strategies to overcome their weaknesses.

See the Trust page on Facebook.

Mr. Arvind Kaul organized three workshops (15-16 February, 7-8 March and 13 March) for 100 non-executives of the Simbhaoli distillery. Mr. Indeep Singh Bhatia (Sr. VP SSD), Mr. R.K Singh (CGM, SDD), Mr. Rooprajinder Singh (Manager CHR, SSD) and Major D.S Chahal (Manager P&A) also participated in the workshop. The theme of both the workshops was Dos and Donts for SelfDevelopment in the Changing Business Environment. The participants deliberated upon an array of ideas for achieving that goal, using the brainstorming method.

SIMBHAOLI SUGARS
Specialty Sugars Potable Liquor Ethanol Power

Vol. 8, No. 1, October 2012-March 2013

CANE DEVELOPMENT NEWS

In the January-March quarter, two farmers meets were organized at Simbhaoli plant. The first meet discussed ways to promote CO-0238, a special cane variety so that production and recovery could be maximized. Dr. Arun Kr. Singh, Scientist, Sugarcane Research

VISITORS

Senior officials from two Iranian companies - Sugarcane Development and Byproduct Commercial - visited the Simbhaoli plant. The delegation was led by Mr. Ezatollah Razee, managing director.

Station, Muzaffarnagar supervised the second meet, which discussed spring planting and new techniques of sugarcane cultivation.

SIMBHAOLI INDIA FOUNDATION

Simbhaoli India Foundation, in association with Dev Nandini Hospital, Hapur, organized a blood donation camp on 23rd February at Brijnathpur. 58 people participated in the camp.

A delegation from PTPN X1, the A team from Competitive Capabilities Indonesian Sugar Company visited our International, Singapore visited Simbhaoli plant to study our systems and processes. sugar complex at Simbhaoli.

Holi Celebrations at Simbhaoli

REPUBLIC DAY CELEBRATIONS

Simbhaoli Republic Day was celebrated with enthusiasm at all the three plants. Mr. I.S. Bhatia and Mr. B.B. Pathak hoisted the national flag at special functions held at Simbhaoli and Chilwaria respectively.

Other Functions at Simbhaoli

Christmas Celebrations at Simbhaoli.

A special function was organized for the kids, teachers and parents at the Kindergarten School, Simbhaoli plant on March 13.

Chilwaria

SIMBHAOLI SUGARS
Indias largest integrated sugar refinery
Simbhaoli Brijnathpur Chilwaria A FSSC 22000:2011, ISO 9001:2008 & ISO 14001:2004 Certified Company

3rd Floor, E-13/29, Harsha Bhawan, Middle Circle, Connaught Place New Delhi 110001 India Tel: +91-11-43214100 E-mail: info@simbhaolisugars.com Website: www.simbhaolisugars.com

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