Detailed SWOT Analysis of Dhampur Sugar Mills – The Leading Integrated Sugarcane Processing Companies In India

Quick Stats on Dhampur Sugar Mills

Founder	Lala Ram Narayan Ji
Year Founded	1933
Origin	Dhampur, India
No. of Employees	1274+
Company Type	Public
Market Cap	Rs 3,465.43 Crore (2022)
Annual Revenue	Rs 895.02 Crore (2021)
Net Income/ Profit	Rs 76.02 Crore (2021)

 

 

Products by Dhampur Sugar Mills

• Sugar
• Power
• Ethanol
• Alcochem
• Industrial Gases
• Bio Fertiliser

Competitors of Dhampur Sugar Mills

• Shree Renuka
• EID Parry
• Balrampur Chini
• Triveni Engg
• Dalmia Sugar

As now we have a better understanding of Dhampur Sugar Mills, let’s look into the SWOT Analysis of Dhampur Sugar Mills.

SWOT Analysis of Dhampur Sugar Mills

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows Dhampur Sugar Mills to compare its business and performance with competitors and the industry as a whole.

So let us go ahead and first have a glance at the strengths of Dhampur Sugar Mills from the SWOT analysis of Dhampur Sugar Mills.

Strengths of Dhampur Sugar Mills

Your organisation’s strength is something that makes it stand out from the rest. It can be a competitive advantage that sets it apart from its competitors. Some of the strengths of Dhampur Sugar Mills are as follows –

• Brand Name & Reputation: Dhampur Sugar Mills has been running successfully since 1933 which helped them to gain goodwill and reputation over other brands; from running for so long they know how the market works which helped them in growing bigger day by day. The company has a crushing capacity of 45,500 metric tonnes of cane per day.
• Focused & Consistent: Dhampur Sugar Mills has been continuously striving to maximise the potential of sugarcane and this focused and continuous effort has resulted in Dhampur becoming one of India’s leading integrated sugarcane processing companies. 
• Product Portfolio: Dhampur Sugar Mills’ portfolio consists of rich manufacturing of downstream products like power (co-generation) and ethanol. The product line includes sugar, ethanol & alcohol, power, bagasse and ahri-inputs. The vast portfolio of products helps Dhampur Sugar Mills to explore more revenue streams.
• Low Debt Ratio: Looking at their financials Dhampur Sugar Mills has a low debt ratio which helps them in investing more and more in marketing prospects and other activities.
• Social Responsibility: Dhampur Sugar Mills are involved in a bunch of social activities sustainably and equitably in the enrichment of the community by creating sustainable livelihood, education, healthcare, sanitation, and development of rural infrastructure.
• Customer Trust: From being the oldest and leading company in this industry helped Dhampur Sugar Mills to have more customer loyalty and trust and also because of their sustainable approach.
• Government Support: Dhampur Sugar Mills gets immense support and recognition through various awards from the government of India which is why the limited company is still generating revenues in increasing directions. 
• The Introducer of New Tech: The brand’s pioneering efforts have resulted in the introduction of new technologies like Fibrizors, Pressure Feeders, Pressure Evaporation Systems with Falling Film Type Evaporator Bodies, Vertical Continuous Pans, 105 ata bagasse fired boiler etc. becoming the mainstay of Sugar technology in India.
• Sustainability: They use Bagasse – the residue material left after the crushing of sugarcane to produce green energy and fuel instead of fossil fuels. They even use it to make organic fuels and electricity. Sustainability just means using the waste of one product as a raw material for another product.
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Weaknesses of Dhampur Sugar Mills 

Weaknesses are negative aspects and attributes which have little control over. These are the areas where the business needs to improve to remain competitive.

• Extensive govt. Rules: Operating mills, refineries, the distillery is never easy as there is a lot of govt. restrictions, which one has to deal with. Changing governments & their rules affect the company’s production & sale, often in a negative manner.
• Climatic Limitations: Being majorly operating from coastal lines, Dhampur Sugar Mills is bound to face extreme climatic conditions. Extreme climatic conditions negatively affect production & transportation.
• Increasing Pollution: Any mill or refinery (especially sugar) generates a huge amount of pollution, hence currently it is contributing to environmental degradation. Environmental issues can be severe & can sometimes result in the closing of a factory, mills, etc. 
• Business Model: The product that Dhampur Sugar Mills produces is not hard to find in the market. Today, every local grocery store keeps open sugar and local sugar producers with small plants are leading the inner local markets because the overall production cost is cheaper at local small plants than what is incurred at Dhampur Sugar Mills units.
• Not a Global Brand: Dhampur has been doing great in India but one thing that lacks in the Dhampur Sugar Mills is that it is not worldwide. Shree has been in India for a major period and now it should plan to expand further.
• More Competition: The entry of new competitors inside the market who are more technologically advanced and the growth in sugar-free products can lead to a significant decline in the market and other sugar substitutes like jaggery, honey, etc.

Opportunities for Dhampur Sugar Mills

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

• Low Competition: Due to complicated govt. rules & regulations, it is not easy to enter this industry & operate it. Hence, few people even think about entering this industry & even fewer get success & make it to the top list of companies.
• E-commerce: The products like sugar, ethanol (Alcohol) & organic manures can be sold via e-commerce stores which will cater to the company’s growth. E-commerce sales in today’s era can drive the sales & revenue of the company higher.
• Business Expansion: Dhampur Sugar Mills’ businesses are rising due to its strategies & diligence, they are off to achieve higher levels of production & are looking forward to expanding its business more in the southern region & eastern coastal region. This expansion would lead to more revenue & profit for the company. Although, at the same time they have to be aware of their competitors & their strategies to be ahead of them.
• New Environmental Policy: New opportunities will create a level playing field for everyone in the industry. This is a great opportunity for Dhampur Sugar Mills, Inc. to realise the benefits of new technologies and gain market share in new product categories.
• Population: The population has been growing and is expected to grow at a positive rate in the upcoming years. This is beneficial for Dhampur Sugar Mills as there will be an increase in the number of potential customers that it can target.
• 100% Utility/ Recycle Model: Dhampur Sugar Mills has opted to utilise/ recycle 100% effluents by adopting composting technology to manufacture bio-compost and by maintaining zero liquid discharge.
• Switching to Organic Fuels: Their usage of organic fuel instead of fossil fuel creates an opportunity on their behalf and lets them use their raw materials more sustainably.

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Threats to Dhampur Sugar Mills

These are the factors that have the potential to harm an organisation. Threats are uncontrollable external factors that might overcome or damage the strength and opportunities.

• Climate Change: The end products of the company are entirely based on the major crop they use. Climate changes can negatively affect their production on a large scale. If crops are spoiled it can result in less production, sale & high prices.
• Political Uncertainty: Dhampur Sugar Mills is an agri-based business that requires ample land areas, the state rules & regulations affect the decisions directly for businesses like these. Govt. can often leave a great impact on its production & operations.
• Contest in Price: Several little new sugar companies in India are evaluating their sugar items in reasonable choices. Individuals are regularly floating toward them.
• Fierce Competition: Strong profitability has increased the number of small players in the industry over the past two years, putting downward pressure on overall revenue as well as profitability.
• Consumer Buying Behaviour: Changing one buying behaviour from online minute delivery stores where a range of options are available in front of individuals to any other mode can be a threat to the company.
• Negative Effect on Resources: This could jeopardise Dhampur Sugar Mills’s profitability. A shortage of skilled labour and farmers or some sudden uneven events at sugar farms such as fire, heavy rains, effect on crops due to uncertain environment etc threatens Dhampur Sugar Mills’s continued earnings growth in the market.

This ends our elaborative SWOT analysis of Dhampur Sugar Mills. Let us conclude our learning below.