SUGAR INDUSTRY

Group Members
Hafeez ur Rehman
Qamar Nazir
Shafiq Ahmad
Muhammad Waqas

Hafeez ur Rehman
BE-10-01
Mission & Objective

Our Mission is to gain and maintain
leadership in the sugar industry. Our
aim is to produce the best quality
products with lowest possible cost to
benefit our customers.
Quality objectives are designed with
a view to enhance customer
satisfaction and operational
efficiencies.

Introduction
Pakistan is amongst the most low cost
sugar producing countries of the world
and because of this factor international
investors are very much interested in
Pakistan sugar and sugar related
products industry.
The Sugar industry in Pakistan is the 2
nd

largest agro based industry after Textiles.
The 15
th
biggest global producer of
sugar but also the 8
th
largest consuming
country in world,



In Pakistan about 99% of the sugar is
extracted from sugarcane.
Pakistan is the 4
th
largest producer of
sugarcane and 12
th
largest producer
of refined sugar in the world Its share
in value added of agriculture and GDP
are 3.4 percent and 0.7 percent,
respectively



Sugarcane is grown on around a
million hectares and provides the raw
material for sugar mills
There are 82 functional sugar mills in
the country out of which 45 are in
Punjab, 32 in Sindh and 5 in KPK.


The total sugar production capacity is
6.8 million tons in a season and about
six hundred thousand (600,000) tons
per day.
Pakistan also uses sugar to produce
alcohol for medicinal purposes,
ethanol
for fuel, chip board manufacturing, etc.

Target Country

Saudi-Arabia
Saudi Arabia is the largest economy in
the Middle East and the richest Arab
country.
The economy of Saudi Arabia is
entirely based on oil.
Saudi Arabia has a very fast growing
economy


Qamar Nazir
BE-10-36
SWOT-Analysis
Pakistan
STRENGTH:
- Most of population live in rural areas
thats why labor is cheap.
- Cultivatable land is available for the
production.
- Large domestic market is available.
WEAKNESS
We do not have proper recycling
system which results in high water
consumption.
We do not tune-up boilers periodically
that causes emission of gases.
Low yield farmers are using old
technology for production.
Sucrose recovery rate is less than
international standard

OPPOURTUNITIES

We can increase per yield production
by using new technologies and
fertilizers.
-We can shift towards beet production
as it is more cheaper.
Large area of cultivable land available
We can earn foreign exchange by
exporting surplus sugar.
Rather than exporting raw material
we can add value to it.

Threats

The production of sugar cane
decreases the productivity of land.
As sugar cane crop requires a lot of
water, increase in production may
create shortage of water for other
crops.
Recent floods
Smuggling

SWOT-Analysis
Saudi Arabia
Strengths
The recent oil price boom has boosted
growth in the non-oil sector and
infrastructure is now much improved.
A large and growing local population
means solid domestic demand for
goods, services and infrastructure in
spite of the global macroeconomic
crisis.


Weaknesses

Dependence on oil means growth;
exports and government revenue
remain highly vulnerable to shifts in
world oil prices.
The private sector is dependent on
expatriate labor, reflecting a shortage
of marketable skills among nationals
and a high unemployment rate among
Saudi citizens.


Opportunities
A competitive business environment
will make Saudi Arabia appealing to
investors once risk appetite returns to
global markets.
Slower growth and lower liquidity will
bring inflation down domestically,
cushioning the impact of the consumer
slowdown.


Threats
Any attacks on oil facilities could lead
to a disruption of output, which would
be extremely detrimental to the overall
economy given the reliance on this
sector.
Perceptions of high security risk deter
some investors as well as adding to
the costs of insurance.


Shafiq Ahmad
BE-10-13

PESTEL analysis
Saudi Arabia


The political landscape discusses the evolution of
the
political scenario in Saudi Arabia in different periods.
The economic, social, foreign and defense policies are
considered in the political landscape section. It also
discusses the performance of the country as per World
Bank Governance Indicators.




The economic landscape describes the
evolution of the economy of Saudi Arabia in
different periods. It also examines the
countrys performance in terms of GDP
growth, composition by sector (agriculture,
industry and services), fiscal situation,
international investment position, monetary
situation, credit disbursement, banking
sector and employment. The economic
landscape also explains the financial
system in the country, especially with
regard to financial authorities/regulators.

The social landscape covers the
demographics, education and healthcare
scenario in Saudi Arabia. The social welfare
policies of the government along with the
countrys performance in terms of
healthcare, income distribution and
education are also provided.
The technological landscape discusses the
structure and policies in terms of Intellectual
property, research & development,
technology agreements/pacts; and policies
related to the promotion of technology in
Saudi Arabia.



The legal landscape examines the structure of
the judicial system, legislation affecting
businesses, tax regulations, labor laws, trade
regulations and corporate governance in Saudi
Arabia.

The environmental landscape in Saudi Arabia
discusses the environmental regulations and
policies of the country. The performance of the
country in terms of in terms of environmental
indicators and impact of environmental policies
is also examined.



Muhammad Waqas
BE-10-21

Strategies to increase the
export

Tariff imposition

Focus in the production area

Focus in the competitors
countries

Producing less cost product
Country & Firm specific advantage

Our Firm is offering a sugar of higher
quality for targeted market. Firm have
low cost and resource advantage.
Saudi Arabia has a very fast growing
economy
Investors in Saudi Arabia enjoy
increasingly well-developed business
clusters and value chains
Pakistan is also eying to finalize a
bilateral trade agreement with Saudi
Arabia on trade and investment.


Competitive Advantage matrix

Porter's Five Forces Model

Barriers of entry (Medium)
Bargaining power of supplier (high)
Threats of substitutes (low)
Inter firm Rivalry (high)
Bargaining power of buyer (low)

Conclusion

Sugar industry has a potential to achieve heights
in Pakistan if major steps are taken into
consideration in this regard.
Sugar industry being the second largest agro
based industry faces a lot of problems and if
steps
for its betterment are not taken this industry can
collapse which will result in importing sugar from
foreign countries and would eventually result in
an
increase in the trade deficit.
Other than sugar we can diversify and produce
Ethanol which has been proved to be very helpful
in developing economies and ease our import
bill.