RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

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FLOW CHART OF FINISHING GOODS Rectified Spirit (Strength-94-95% v/v) Redistilled in Extra Neutral Alcohol Plant (Total Deooxidice Copper plant) Reduced with Demineralized Water Denatured with Denaturent ENA ( Extra Neutral Alcohol) -95 to 96% v/v Blending with Color & Essences for C&L Denatured Spirit/Special Denatured Spirit (Not for Human Consumption) Reduced with D.M.Water Blending with Color & Essence / Malt Spirit etc.(for IMFL) Bottling (Procedure) Empty Bottle Washing /Rinsing Filterisation (Liquor) Bottle Filling Sealing Labeling Packing (Finished Goods) Remarksemi-automatic complete bottling conveyors. 87

INFRASTRUCTURE FACILITIES I. RAW MATERIALS India is the largest producer of sugarcane in the world and sugar industry is the second largest agro-based industry of our country, textiles industry being the largest. Production of molasses has increased from 0.4 million tonnes in 1950-51 to 8.29 million tonnes in 1995- 96. The Government has already decontrolled the prices and movement of molasses. (Source: Appraisal Report of SBI dated September 5, 2008) A. MOLASSES Molasses, which is the by-product of sugar industry, is one of the major raw materials for manufacture of alcohol. The Company is situated in the neighbourhood of fertile sugar belt where availability of molasses is plenty. The requirement of raw materials for the Company was/is as follows: Molasses usage Grain usage & requirement & requirement Year 2004-05 2.00 lakh quintals 2.12 lakh quintals Year 2005-06 1.86 lakh quintals 3.05 lakh quintals Year 2006-07 3.35 lakh quintals 3.48 lakh quintals Year 2007-08 3.19 lakh quintals 3.36 lakh quintals Year 2008-09 1.70 lakh quintals 4.60 lakh quintals The Molasses are procured directly from the neighbouring Sugar mills, and also through dealers at competitive prices. The Molasses’ market is expected to remain, more or less, stagnant during the year, with full availability of the same. No shortage in supply is envisaged. The Company expects the prices to be at its lowest during the months when the stocks of molasses is usually high (when the Sugar mills are high in capacity of molasses and are in the process of disposing off the same on account of lack of storage capacity). The major suppliers of Molasses during the year ended March 31, 2009 are as under: Sl. NAME Purchase % of No. (Rs. In Total lakhs) Purchase of Molasses 1 Sonepat Cooperative Sugar Mills Ltd., Sonepat, 184.47 29.35 Haryana 2 Choudhury Devilal Cooperative Sugar Mills Ltd., 150.17 23.90 Gohana 3 Meham Co op Sugar Mills Ltd., Meham 139.67 22.23 4 The Haryana Cooperative Sugar Mills Ltd., Rohtak, 84.53 13.45 Haryana 5 The Shahbad Cooperative Sugar Mills Ltd., Shahbad 59.97 9.54 Haryana 6 Om Shiv Sheera Supply, M Nagar 7.73 1.23 7 Goyal Trading, M. Nagar 1.89 0.30 B. GRAIN The Company’s facilities produce Alcohol from both molasses and grain. Grain primarily comprises broken rice, ground wheat flour (atta), jowar, bajra etc. As regards Grain, the Company procures its Grain requirement from Delhi’s wholesale Grain market. Grain is procured through dealers/stockists in Delhi. The Company expects no shortage and full availability of grain throughout the coming years. The price-trend of the grain is also expected to remain stagnant throughout the year, and no volatility is expected. 88

FLOW CHART OF FINISHING GOODS<br />

Rectified Spirit<br />

(Strength-94-95% v/v)<br />

Redistilled in Extra Neutral<br />

Alcohol Plant (Total<br />

Deooxidice Copper plant)<br />

Reduced with<br />

Demineralized<br />

Water<br />

Denatured with<br />

Denaturent<br />

ENA ( Extra Neutral<br />

Alcohol) -95 to 96% v/v<br />

Blending with<br />

Color & Essences<br />

for C&L<br />

Denatured Spirit/Special<br />

Denatured Spirit (Not for<br />

Human Consumption)<br />

Reduced with D.M.Water<br />

Blending with Color & Essence /<br />

Malt Spirit etc.(for IMFL)<br />

Bottling<br />

(Procedure)<br />

Empty Bottle<br />

Washing /Rinsing<br />

Filterisation<br />

(Liquor)<br />

Bottle Filling<br />

Sealing<br />

Labeling<br />

Packing<br />

(Finished Goods)<br />

Remarksemi-automatic<br />

complete bottling conveyors.<br />

87

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