Strategy

Renuka do Brasil is entirely focused on the sugar/ethanol market, splitting the production between sugar and ethanol.


Utilizing Shree Renuka Sugars knowledge of the international market, the company cautiously uses future market opportunities for fixation and purchase of options, optimizing prices, protecting itself from exposure to dangerous margin calls, but at the same time avoiding complex derivatives.


Having sugarcane as the major component of its cost, the agricultural department tries to maintain a balanced supply between its own planting in third party areas and long range purchase contracts from suppliers. The purchase price of sugarcane is always preferably indexed to the price of its final products in order to guarantee a lower variation of profitability.