Dear Stakeholders,
I am pleased to present our 13th Annual Report for the Financial Year
2023-24.
The global economic landscape has seen significant challenges, with
growth decelerating to 3% in 2023, down from 3.5% in 2022. The slowdown, exacerbated by
ongoing geopolitical tensions, inflationary pressures, and tightening monetary policies,
has had wide-reaching effects on trade, consumer spending, and overall economic activity.
In particular, advanced economies are expected to experience further declines in growth in
2024 as policy tightening continues to impact economic activity.
Despite these global headwinds, Asia, particularly India, remains a key
driver of global growth. The Indian economy demonstrated remarkable resilience with an
8.2% growth rate in FY 2023-24, significantly higher than the previous year's 7.0%. This
growth was underpinned by robust domestic demand, a rebound in capital inflows, and strong
foreign exchange reserves. Moreover, India's inflation moderated to its lowest levels
since the pandemic, which, combined with stable interest rates, positions the country
favorably for future economic expansion.
In the global sugar market, production is projected to reach 179.5
million tonnes in 2023-24, driven primarily by higher output in Brazil, which offsets
declines in India and Thailand. However, despite a slight decrease in India's sugar
production due to adverse weather conditions, the country continues to maintain a strong
position in the global market, with increasing domestic consumption and a focus on ethanol
production.
<
p >At Simbhaoli Sugars, we have faced our share of challenges,
particularly with pest infestations and adverse weather conditions impacting sugar
recovery rates. However, we remain committed to overcoming these hurdles. Our sugar
recovery has seen a gradual decline over the past few years, but with strategic
interventions and a focus on operational efficiency, we managed to slightly improve
recovery rates this year.
Our distillery operations continue to be a strong pillar of our
business. Despite a reduction in ethanol production this year due to government
restrictions, we increased our production of ENA, contributing positively to our overall
performance. Furthermore, our efforts to produce ethanol through the B-Heavy route align
with the government's vision for renewable energy, and we continue to explore
opportunities to expand our ethanol business.
In conclusion, while the global and Indian sugar sectors face
uncertainties, there are also numerous opportunities, particularly in the ethanol business
and the potential for growth in emerging markets. With continued focus on operational
excellence, innovation, and strategic partnerships, Simbhaoli Sugars is well-positioned to
capitalize on these opportunities.
We extend our deepest gratitude to our farmers, employees, and partners
whose dedication and hard work are the backbone of our success. As we move forward, we are
committed to driving growth and creating value for all our stakeholders.
| Best Wishes |
| Gurmit Singh Mann |