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Andhra sugar Ltd: The Innovative Business Company

Golden Jubilee company Andhra Sugars Ltd (ASL)located in Andhra Pradesh was established on the 11th of August 1947  for production of sugar then used the backward integration business  technique and has now diversified into a large number of downstream products thereby adding a lot of value to the company.


It has its operations located at Tanuku, Kovvur and Guntur and now manufactures well over 25 products. The Andhra Sugars is more of a Chemical Company and less of a Sugar Company. The range of products it manufactures are – Acetic Acid, Acetic Anhydride, Ethyl Acetate, Aspirin, Salicyclic Acid, Mono Methyl Hydrazine, Unsymmetrical Dimethyl Hydrazine, Ethanol,
Industrial Alcohol, Carbon Dioxide, Caustic Soda, Chlorine, Hydrochloric Acid, Chlorosulphonic Acid etc.

The innovative ASL has used all the by-products from the sugar plants like MOLASSES, BAGASSE, CARBON DIOXIDE, to produce industrial alcohol and ethanol. It is the company which has made money from the waste product of sugar plants.

IT IS THE COMPANY WHERE NOTHING GOES WASTE ."

The prospects of pharmaceutical companies being bright in next some decades, the ASL where its more than 25% of turnover comes from supplies to pharma industry, so it will be very correct to mentioned that Andhra Sugars will be a direct beneficiary.

IT WONT BE OUT OF PLACE TO MENTION THAT ANDHRA SUGARS IS THE ONLY INDIAN COMPANY TO MANUFACTURE ROCKET FUEL FOR ISRO. THE ENTIRE CAPITAL EXPENDITURE HAS BEEN BORNE BY ISRO AND ANDHRA SUGAR EARNS AROUND Rs.1.5 cr EVERY YEAR. ISRO IS AN EXTEMELY SATISFIED CUSTOMER AND HENCE IT WILL BE EXPANDING THE CAPACITY

IN FY2005 AND WE EXPECT THE PROFITS FROM THIS DIVISION HAVE THE POTENTIAL TO TRIPLE. THE ENTIRE CAPITAL EXPENDITURE WILL BE ONCE AGAIN BE BORNE BY ISRO. THIS FACT SPEAKS VERY HIGH OF THE TECHNICAL COMPETENCE OF ANDHRA SUGARS R&D TEAM.


VPS Advisory Services recommend to add this stock in your portfolio to give huge return in one to two years.