INDEXINTRODUCTION 3KEY FEATURES OF SUGAR INDUSTRY IN INDIA 3KEY SUCCESS FACTORS (KEY PERFORMANCE INDICATORS) 4PESTIVAL ANALYSIS OF SUGAR INDUSTRY IN INDIA 4CARRIERS FIVE FORCES ANALYSIS 8FACTORS LEADING TO INCREASING DEMAND FOR SUGAR IN INDIA 12GLOBAL OVERVIEW OF SUGAR 12BY-PRODUCTS 13FACTORS LEADING TO THE ATTRACTIVENESS OF THE INDUSTRY 14BIBLIOGRAPHY 15SUGAR INDUSTRY INDIA IntroductionSugar is extracted from two raw materials: beetroot and sugarcane, both of which produce sugar refined identical. Sugar cane represents two-thirds of the raw material used for sugar production in the world and beetroot one-third of the rest of the world's production. India is the second largest sugar producer in the world with production ranging between 10 and 12% of the world. (Brazil is the first) In India, sugarcane is the key raw material for sugar production. Maharashtra and Uttar Pradesh account for the majority of sugar production in India. The sugar industry is the second largest agro-processing industry in India and accounts for 1% of India's GDP for fiscal 2005. The area under cultivation in India, amounting to 4-4.5 million hectares, It represents 2.7% of the cultivated area in India. Sugar production has always been in deficit compared to demand, with production of only 17.5 million tonnes compared to 19 million tonnes of consumption for the year 2005-2006, a factor that has led to the attractiveness of the sector . Key characteristics of the sugar industry: • Capital intensive • Government regulated • Seasonal fluctuation in the industry (increased demand during holiday seasons) • Raw materials constitute the main costs • No suitable substitutes Key success factors (indicators performance key) • Utilization of capital • Optimal utilization of by-products for additional revenue • Captive p...... half of paper ......rts from India by Pakistani Export opportunities to countries like Bangladesh , Indonesia, Sri Lanka and the Middle East as EU used to supply them earliero Growing demand from China• Ethanol productiono Blending 5% ethanol with petrol is already mandatoryo Government is pushing to mandate the use of 10% ethanol• Diesel cogeneration Low demand of capitalo Cheaper than conventional energy projects to produce energy• Internal factorso Increase in internal demando Increase in populationo Increase in per capita consumption in IndiaBibliographywww.iari.comwww.indiainfoline.comwww.icicidirect.comwww.fcamin.nic.inBooks: Crafting and executing Strategy by Thompson, AA(2005) McGraw Hill publication, 14th edition