Eastern Sugar & Industries Ltd SWOT Analysis, USP & Competitors

Posted in Food & Beverages, Total Reads: 742
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SWOT Analysis of Eastern Sugar & Industries Ltd with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Eastern Sugar & Industries Ltd

Parent Company

Eastern Sugar & Industries Ltd

Category

Food Processing and products

Sector

Foods and Beverages

Tagline/ Slogan

-

USP

Prominent sugar manufacturer in India

STP

Segment

Industrial users of Sugar and related products

Target Group

Sugar Brokers and Wholesalers

Positioning

Sugar industry in India

SWOT Analysis

Strengths

1. Located in Bihar, the company is at an advantage as Bihar is a sugar-deficit state

2. Apart from earning income from trading activities, it has also started earning income from Block Usage Charges from Shree Hanuman Sugar & Industries Ltd (SHSIL), in respect of plant & machineries owned by it.
3. Management at ESIL has a long-term experience of real estate development, and helped the company diversify into the business of construction and selling of residential houses
4. ESIL is in the process of setting-up of a Sugar Mill of 4000 TCD in Bihar, at a project cost of about Rs. 160 crores which will provide substantial revenues in future
5. Presence of temporary & cheap labor force during peak period ensures maximum profits

Weaknesses

1. No manufacturing activities were carried on during the last 2 years
3. Not announcing dividends due to expansion plans may reduce the investors’ confidence in the company

2. The Company continues to suffer on account of inadequate availability of sugarcane

Opportunities

1. The Company intends to carry on business of running and operating BPO & Service Centers. Its presence in Bihar, would ensure sufficient semi-skilled employees for this business

2. The Management also proposes to set up an Ethanol plant in near future. Petroleum Ministry has already implemented mandatory 5% ethanol blending in petroleum, which provides excellent opportunity for ESIL

3. Decontrol of Sugar industry which is under discussion would improve the stability of the industry and will increase the profits of sugar companies

Threats

1.In Motihari, Bihar, the existing cane varieties have very low yield and low recovery

2. Cheap sugar imports are harming the existing sugar mills in India and leading them to crisis

3. Sugar industry is very volatile as many factors including rainfall, cultivated area and transportation cost affects sugarcane prices and hence make this industry unpredictable

Competition

Competitors

1. Indian Sucrose Ltd.

2. Dollex Industries Ltd.

3. Gayatri Sugars Ltd.

4. KM Sugar Mills Ltd..

5. Piccadily Sugar and Allied Indus

6. Dhampure Specialty Sugars Ltd.

7. Monnet Project Developers Ltd.

8. Sir Shadilal Enterprises Ltd.



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