Abstract

This case discusses the evolution and dynamics of the Indian sugar industry. It provides a detailed analysis of various factors that impact the structure and attractiveness of the industry in India. It further explains how the global industry scenario is developing and has an influence on the advancement of the industry in India.

It throws light on various aspects, such as government regulations, geographical differences, technological trends, availability of substitutes, barriers for exit, lack of sufficient focus on by-products, demand and supply forces, change in global practices and guidelines from international agencies such as WHO, that influence the elevation and future of this industry.

In a scenario where sugar producers persistently face high inventory situation, high cost of production, exit restrictions and stiff government regulations, along with other global factors such as excess supply and stagnant consumption growth, innovative players are also struggling to maintain profitability, can Indian sugar manufacturers find ways to sustain their business? Would complete deregulation, backward or forward integration, further diversification into by-products, moving into multiple geographies, changing the source of sugar or strategic partnerships with other global companies be good enough options to turnaround the situation?

Learning Objective (Maximum of 500 Characters):  Briefly describes teaching goals of case.

 The primary objective of the case is to enable students to undertake a detailed industry analysis of the Indian Sugar Industry using Professor Michael Porter’s five forces framework. The case can also be used to understand the evolution of the industry and consequent structural implications of the five forces in the industry. The instructor can also use the case to distill critical success factors which are prevalent in the industry. Lastly, the case can also be used for a comparison of the structural attributes of the Indian and Brazilian sugar industries.

 The case is ideally positioned in the initial part of a basic strategy course on business level strategy which can be used to illustrate the structural elements that determine the attractiveness of the Indian sugar industry.