Case Study Of Mehran Sugar Mills Limited

790 Words2 Pages

Business Description
Mehran Sugar Mills Limited was founded in December 1965.It is a public limited company.the mehran sugar mills are situated in Tando Allayer a district in Sindh.The plant and machinery is imported from Japan for both refining and manufacturing. The plant is well maintained and it’s production capacity is increased gradually. Mehran sugar mill has continuously grown since its origin and come out as a diversified leading company.

Mehran Sugar mill is Pakistan’s leading producer and marketer in white and brown sugar. Further it has investments in ethanol facility and blue chip companies which are listed on the Karachi Stock Exchange. Mehran sugar mill has been awarded the prestigious top 25 KSE company award thrice.

In fiscal year 2013, Mehran had Rs. 5.952 billion sales and other revenues. Continuing operations earnings were Rs. 120 million. The Company also recorded Rs. 277 million in other operations income.
Rupees in Millions 2013 2012 Percent Change
Sales and other revenues 5,952 4,419 35 %
Net earnings 397 273 45 %
Earning Per Share (EPS) 15.70 10.76 45 %

Business lines include :

Sugar
Mehran's core business is sugar manufacturing. It’s a matter of pride to be one of the leading sugar producers in Pakistan.

Ethanol
Investment in a JV company producing ethanol, Unicol Limited, its production is 30 Million litres annually from converting molasses to Ethanol. Unicol Limited is amongst Pakistan's leading ethanol producers as well as exporters.

Farming
Farming as a separate profit centre with an objective to cultivate high yielding sugar cane varieties, and the best seed used to improve quality. Farming is done in over 100 acres.

Equity Investments
Also investment of Rs 250 Million with emphasis...

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...osition.Investing in energy and plant has enabled Mehran to maintain low cost and secure a long term position in market.

Our main product sugar is a basic necessity of Pakistan as no close substitutes are available so its demand tends to increase .Also the growing population and increased consumption ensure everlasting and increasing demand of sugar thus Mehran sugar mills will always stay in business.

Future Trends

Observing the trends the demand for sugar has constantly increased and will continue to as it’s a vital ingredient in Pakistan’s food industry. With new improved technology the sugar production is become cost efficient and also less time consuming as past. Mehran sugar mills being one of the pioneers in sugar industry has constantly increased its production capacity to meet the targets while maintaining its exceptionally good quality

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