Prudential Sugar Corporation Limited had been engaged in the manufacture of sugar since 1995 at its Plant situated in “PRUDENTIAL NAGAR”, POST Office Koppedu, Nindra Mandal, Chittoor District, Andhra Pradesh having a capacity of 3000 TCD of sugarcane. The sugar factory is allotted by the Director of Sugar & Cane Commissioner, Government of Andhra Pradesh a specific zone area where the cultivation of sugar cane is undertaken by the farmers and thus, the entire crop of cane of the zone area will be supplied to the sugar factory for crushing every year.
The sugar produced by the Company is generally sold in the market through reputed sugar Traders and hence it’s not branded. Besides, the Company in the past, had exported large quantities of sugar to overseas market under specific Public Policy guidelines issued by the Government of India during the times of surplus production in the country. Also, the Company had imported large quantities of raw-sugar from Brazil, Indonesia etc., as permitted by the government of India to process into white sugar for sale into domestic market in order to overcome the short fall in the country’s sugar production and also re-export the white sugar at a later date under specific licensing conditions.
In the year 2014 the Board of Directors of the Company had resolved to sell/transfer the assets of the business of the Company to a prospective buyer and a resolution to this effect was put to voting before the shareholders of the company and was duly approved by the requisite majority of the shareholders pursuant to which the assets and business of the Company were transferred to Natems Sugar Private Limited in the year 2017. The Company has a well constituted Board of Directors under whose guidance the Company’s operations are carried out.
The Company is presently engaged in managing the operations of Trident Sugars Limited under a Scheme of Arrangement and entered into an Agreement for Management and Operations with Trident Sugar Limited. The Company under the Agreement will provide its managerial expertise in effectively managing the operations of Trident Sugars Limited through its senior managerial personnel placed in the key positions.
The said Management and Operations Agreement envisages a consideration of 50% of the surplus profs to Prudential Sugar Corporation Limited after having accounted for all operating expenses including raw material cost, overheads, utilities etc.,
MANAGEMENT OF THE COMPANY:
The Company, besides the Board of Directors constituting Non-executive Director-Chairman, Executive Director, Independent Lady Director and two Independent Directors, also employs Senior Management Personnel in key positions of Chief Financial Officer, Company Secretary, Executive Vice President assisted by the middle level managers in the respective positions.
The above said personnel are suitably qualified with rich experience and specialization in the sugar industry and have been making significant contributions to the growth of the Company.
PRODUCTS OF THE COMPANY:
The Company primarily manufactures white crystal sugar out of sugarcane. The other products namely molasses and bagasse are by-products and the same are sold by the Company to distilleries and co-gen power plants respectively.
The by-product molasses besides being consumed in Primary Distilleries is also largely exported to foreign countries by the sugar companies in India.
MARKETING / MARKET SHARE:
The sugar manufactured by the Company is normally, as a trade practice, sold to the reputed sugar traders who in turn stock and offload the sugar in the market to the wholesalers and then in to the retail market. The Company manufactured sugar is particularly sold to Traders in Telangana, Karnataka and other surrounding, market pockets owing to the close proximity of the sugar factory as the logistics involved in the movement of sugar is minimal and cost-effective to the Traders.
Given the above market scenario, the Company’s market is confined to regional market and its market share may be approximately 10% to 15%.