About Sanstar Limited

Sanstar Limited is one of the major manufacturers of plant based speciality products and ingredient solutions in India for food, animal nutrition and other industrial applications, with an installed capacity of 1,100 metric tons per day. Through complex, multi-step value addition and manufacturing process, they turn maize into ingredients and solutions that add taste, texture, nutrients and increased functionality to (i) foods as ingredients, thickening agents, stabilizers, sweeteners, emulsifiers and additives in food products (bakery products, confectionery, pastas, soups, ketchups, sauces, creams, deserts, amongst others), (ii) animal nutrition products as nutritional ingredients, and (iii) other industrial products as disintegrants, excipients, supplements, coating agents, binders, smoothing & flattering agents, finishing agents, among others.

They are the third largest manufacturer of maize based speciality products and ingredient solutions in India. Their products include liquid glucose, dried glucose solids, maltodextrin powder, dextrose monohydrate, native starches, modified starches and co-products like germs, gluten, fiber and enriched protein, amongst others. Their speciality products and ingredient solutions are produced at their large-volume, state of the art, strategically located manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat. They believe that their leading position in the industry, technical knowledge to bring specific functionality and nutrition to end products, more than five decades of experience, state of the art manufacturing facilities, diverse product portfolio and clientele in domestic and global markets, provide them with competitive advantage.

Maize Production in India
Maize is one of the major cereal crops grown in India. Maize is a high nutrient crop with versatile applications in end use industries. Maize crop has an important place in the food grain basket of our country, and it is the third most prioritized food grain crop due to its importance in food, feed, specialty maize starch etc. 
There is an increased demand for maize in India which is also evident from an upward trend over the last two decades on area and productivity gains from new improved hybrid seeds. Domestic demand from livestock feed manufacturers and the maize starch industry is driving the growth along with the prevalent competitive prices. 

Production has increased at CAGR 5.5% from 2019-20 to 2023-24. India ranks 4th in terms of global maize acreage and 6th in production. Rising domestic demand for industrial usage and poultry feed may outstrip the domestic maize production in the near future.

In addition to its prominence among food grains, maize is crucial to India's agribusiness value chain's overall development. It is important to comprehend the current economics of supply and demand for maize in India. The sowing and harvesting seasons have a significant impact on the supply and demand of maize. Maize is supplied from March to May and September to December. Demand spikes normally from January to March. 

Feed mills and Poultry farms often hold maize stock for 30 to 60 days, depending on their mill capacities, financial stability, and receivables cycle. Maize starch millers stock maize for 3- 5 months. Purchase of maize usually happens during peak arrival season at low prices for stocking purpose. The inventory is maintained to tide over the peak price months, and buying for regular requirement continues in parallel. Trading companies normally enter into forward trade agreements with consumers (mills, poultry farms) and purchase the grain during peak arrival season. These holding patterns, along with the seasonality of planting and harvesting, have a significant impact on the supply-demand dynamics of maize. 

Maize prices are volatile in nature which leaves the manufacturer of Maize Starch with limited pricing power in commodity product like starch powder. Large players with higher capacities such as Gujarat Ambuja, Sukhjit Starch, Roquette and Sanstar have better control over prices. Due to rising consumer demand and limited domestic supply, India is likely to continue importing minor amounts of food grade maize for the food processing industry.

Maize consumption in India reached around 30.6 million MT in 2022 and expected to reach around 31.3 million MT by 2023. Feed industry consumed about 51% of the total maize, while food consumption accounted for 29% (refer exhibit 8). Biofuel production using maize is still in its initial stages, with just about 1% of maize currently being utilized for this purpose. Domestic demand from feed manufacturers and the starch industry supports competitive prices. This encouraged farmers to cultivate maize, with plantings rising above 10.1 million hectares in MY 2022/2023. By 2032, the share of maize used in animal nutrition is expected to increase to about 54% by 2032. If the Indian Government continues to implement positive policy changes with respect to ethanol blending, the usage of maize for biofuel production is also expected to increase further. The starch industry’s maize demand is also growing on strong domestic and export demand for textile products.

In India, Maize has a great potential in processing due to its high nutritive value and commercial uses. Maize is common name for a cereal grass widely grown for food and livestock fodder. Maize starch, is a carbohydrate extracted from the endosperm of Maize. Of the total Maize produced in India, nearly one-third of production is for human consumption with ~10-15% used for starch production. Nearly 50-55% is consumed for feed (animal & poultry) production. 

This white powdery substance- Starch,is used for many culinary, household, and industrial purposes. India is among the top 10 maize producing countries in the world. Karnataka, Andhra Pradesh and Maharashtra together account for nearly half of India’s production of Maize. India exports as well as imports Maize Starch. Import figures are very small compared to exports, thus depicting India’s ability to meet the domestic demand. 

The Indian Maize Starch market is anticipated to rise at a considerable rate during the forecast period with a CAGR of ~5.12% between 2023 and 2029. In 2023, the market was valued at USD 3,121 Mn in value terms and was around 7.27 Mn MT in volume terms. 

Indian Native Maize Starch Market
The Indian native maize starch industry is expected to be valued at USD 1,897 million in 2023 with volume of 4.87 million tons. The market has grown at CAGR 3.27% since 2019 and is further expected to grow at CAGR 4.56% till the forecasted period. The market for maize starch has expanded significantly over the years as a result of new plants that have recently opened with milling capacities ranging from 200 TPD (Tons Per Day) to 350 TPD at the start and gradually expanding till 600-1000 MTD. Many players in Indian maize starch industry are undergoing capacity expansions to cater to increasing global as well as domestic demands. The minimum viable capacity for maize starch in Indian ranges from 600- 800 MTD. 

Further the growing applications of native maize starch in pharmaceutical, textile, adhesives, paper and cosmetic industry propelling the growth of native maize starch in India. Native starch is incorporated in a wide variety of consumable products, such as bakery mixes, frozen cakes, sheeted snacks, batter mixes, brewing adjuncts, dry mix soups and sauces, processed meat, pudding powders, cold process salad dressings, dips, and fruit preparations. It is also added to pet food products as native starch is an effective source of energy for dogs and cats and enhances the density and texture of the product. It is used as a stabilizing, thickening, gelling, and moisture-retaining agent. It is also employed to stiffen textiles for improving the appearance of fabrics by imparting a glossy texture. It is widely used as a flocculant, binder, and bonding agent in the paper industry.

India Liquid Glucose Market
Liquid Glucose is produced by partial hydrolysis of starch slurry by acid or enzyme. It is clear, colourless and viscous solution which makes it suitable to be used as ingredient in may food and beverage products.

The India glucose market size is estimated at USD 186.6 Mn in 2023 and is expected to expand at CAGR of 4.02% from 2023 to 2029 to reach USD 236.4 Mn by 2029. In volume terms the market is around 0.39 Mn MT in 2023 and will grow to 0.49 Mn MT recording a CAGR of 4.15%. 

India exports most of it's Liquid glucose to Indonesia, Kenya and Sri Lanka and is the largest exporter of Liquid glucose in the World. Liquid glucose is exported by more than 10-15 India Exporters to nearly 1,500 buyers.

Liquid Glucose has wide application in Food & Beverage sector. Liquid glucose is used to manufacture flavoured candies and chocolates. It is used in the preparation of glucose biscuits. Liquid Glucose also helps to keep products soft and fresh and acts as a preservative which makes it suitable for using in Jams, jellies, chewing gums and canned fruits. It is also used as a base for preparing artificial honey. 

Liquid Glucose is also used in pharmaceutical industry particularly in cough syrup and vitamin-based tonics. It is also used as a granulating agent for tablet coating. 

Liquid glucose also has it use in curing and imparting flavour in tobacco. Liquid Glucose is added to shoe polish to prevent which helps avoid caking and gives better shine. It is also used in tanning to get softer texture and enhance weight. Cargill, Agrana, ADM, DGF Service, Ingredion, Karo Syrup, Dr. Oetker, Grain Processing Corporation, MEFSCO, Queen Fine Food, Roquette and Tate and Lyle among others, are the major players in the India liquid glucose market.

Indian Maltodextrin Powder Market
Maltodextrin Powder is produced by enzymatic hydrolysis of Maize starch, a lightly hygroscopic in nature. It is a fine white powder produced by spray drying partially hydrolysed starch, it has a dextrose equivalent (DE) of 10-25% it provides a convenient and nutritionally sound way to replete energy reserves. Maltodextrin is a complex carbohydrate combination that provides long-lasting energy. Maltodextrin powder has a rapid rate of digestion, allowing it to supply additional calories without causing the abdominal discomfort that can be experienced with simple sugars. The body gets energy from maltodextrin gradually easily and evenly, so it is ideal for carbo loading. 

Maltodextrin Powder is highly recommended for those whose metabolic rate and appetite is the limiting factor in their ability to gain weight. Use of maltodextrin will speed the rate of recovery after exercise by inhibiting proteolysis. Carbohydrate supplementation is one of the most reliable and inexpensive ways to increase exercise performance. 

India Maltodextrin market was valued at USD 141 Mn in 2023. The market has been projected to expand at a CAGR of 6.93% to reach the value of USD 210.8 Mn in 2029. In volume terms the market is around 0.2 Mn MT in 2023 and will grow to 0.38 Mn MT recording a CAGR of 6.35%.

Maltodextrin is commonly used as a food additive and is present in various packaged foods such as seasonings, cereal, potato chips, desserts, soups & sauces, canned fruits, snacks, spice mixes, baked goods, instant pudding, salad dressings, nutrition bars, sauces, yogurt, sugar-free sweeteners, cake mixes, and meal replacement shakes among others. 

In tablet manufacturing Maltodextrin is used as a direct tablet excipient. As a fat replacer it is used in manufacturing of i cecreams, salad dressings and desserts. Other uses include oil well drilling fluids and other niche industrial applications. Key end users in India include- Zydus, Nestle, Danone, P&G and Wockhardt among others.

Approximately 60-65% of production is undertaken for regular maltodextrin followed by low DE maltodextrin. Low maltodextrin used in India is imported. Other maltodextrin demand is mostly filled by Indian producers. It is available in 25- 50 Kg HDPE bags with the inner liner of LDPE & 25 kg Kraft Multiply Paper Bags. Major players in maltodextrin market in India are Blue Ocean Biotech, Blue Kraft Agro, Sanstar Ltd, Cargill India, Gujarat Ambuja, Gulshan Poly, Roquette India, Sahyadri Starch, ShreeGluco Biotech and Sukhjit Starch.

Indian Dextrose Monohydrate Market
Dextrose Monohydrate (D-glucose) is a sugar that's a stable, odourless, white crystalline powder or colourless crystal. Dextrose Monohydrate is moderate in sweetness which is 65-70% sweet as sucrose. In its pure form, it has a dextrose equivalency (DE) of 100, which indicates that it's 100% pure Dextrose, not a mixture with other substances as well. It is freely soluble in water at room temperature and also in boiling alcohol. It has a greater depression of freezing point than that of cane sugar which helps in a smoother and creamier texture of frozen food products. 

The India dextrose monohydrate market was valued at USD 97.7 Mn in 2023 and is forecasted to expand at a CAGR of 5.82% to reach valuation of USD 137.2 Mn by 2029. In volume terms the market was around 0.18 Mn MT in 2023 and will grow to 0.25 Mn MT recording a CAGR of 5.24%.

In pharmaceutical application, Dextrose serves to replenish lost nutrients and electrolytes. The agent provides metabolic energy and is the primary ingredient in oral rehydration salts (ORS) and is used in intravenous (IV) fluids to provide nutrients to patients under intensive care who are unable to receive them by the oral route. Solutions containing dextrose restore blood glucose levels, provide calories, may aid in minimizing liver glycogen depletion and exerts a protein-sparing action.

Strong demand from Food and beverage industry is fuelling the growth of market. It is used in bakery products such as breads and buns to supply fermentable carbohydrates for raising the products. In biscuits, it is used as sucrose replacement for cream fillings and fondants as it gives smooth texture to product. Large volume pf application of Dextrose Monohydrate is in confectionaries for sweetening and coating, chewing gum and bubble gum as it helps to improve gloss and colour. It also imparts whip ability and sweetness in applications like nougat and marshmallow. It is also used in frozen desserts to control ice crystal formation. 

To make food products more shelf stable, manufacturers of beverages, confectionary, and bakery goods are focusing on natural ways to keep their portfolios fresh for a longer amount of time. Dextrose made from natural ingredients plays a crucial part in the preservation process as it does not hydrolyse in the same way as sucrose does, allowing many food products to have a longer shelf life. 

Dextrose monohydrate is also used in canned fruits and vegetables for controlling preserving and sweet properties. It is also used for its high fermenting and low-calorie ability in alcoholic beverages. Major players in dextrose monohydrate market are Cargill, Bluecraft Agro, Sanstar Ltd, Gujarat Ambuja Exports, Sayaji maize products, Roquette and Sukhjit starch products.

Indian Dextrose Anhydrous Market
Dextrose is a simple sugar, which is remarkably like glucose or blood sugar. With the hydrolysis of starch, dextrose is industrially extracted whereas naturally it is extracted from the fruits. 

Dextrose is developed during the process of photosynthesis from carbon dioxide and water and is prepared by plants and algae. Dextrose is primarily employed as a sweetener. It is purified and crystallized D-glucose and the total solids content is not less than 98.0 percent m/m. It has a glycaemic index of 100%. 

Anhydrous Dextrose is the anhydrous form of D-glucose, a natural monosaccharide and carbohydrate. It is majorly used in nutrition supplement and as sweetener in food & beverage industry. Apart from food, it is also used in animal nutrition and pharmaceutical industry. It is also used in infant formula to improve nutrition value. 

The India dextrose anhydrous market was valued at USD 74.9 Mn in 2023 and is forecasted to expand at a CAGR of 3.71% to reach valuation of USD 93.2 Mn by 2029. In volue terms the market was around 0.17 Mn MT in 2023 and will grow to 0.2 Mn MT recording a CAGR of 3.31%.

Dextrose Anhydrous can be used in a wide variety of industries including pharmaceutical, food and beverage products and animal nutrition. Dextrose Anhydrous has a wide application in pharmaceutical products by way of Excipient as filler or binder. It is purified and crystallized D-glucose which is directly absorbed into blood. It is used for oral ingestion for enhancing nutrition in patients. It is also widely used in human infusion and injection. It is also used as fillers, diluents & binders for tablets, capsules, and sachets. Dextrose anhydrous can provide benefit to swallowable tablets, chewable tablets, effervescent tablets, and medicated confectionaries. As Parenteral Aids / Vaccine Adjuvants it is Suitable for use in cell culture applications. 

In food industries, dextrose anhydrous can be used as sweetener in candies, gums, baked goods, ice-creams, frozen yogurts, canned foods, cured meats etc. It is also used in energy drinks, low calorie beer products to reduce source of calories. Sukhjit Starch Products, Gujarat Ambuja Exports, Sayaji maize products and Tirupathi Starch Products are some of the major producers of dextrose anhydrous.

Indian Liquid Sorbitol Market
Sorbitol is a sugar alcohol and is identified as a potential key chemical intermediate from biomass resources. It is used as sweetener, humectant, sequestrant, texturizer, stabilizer, and bulking agent in various industries such as food & beverage, pharmaceuticals, cosmetics & personal care, etc.

The India liquid sorbitol market size was valued at USD 61.2 Mn in 2023 and is projected to reach USD 80.7 Mn by the end of 2029, exhibiting a CAGR of 4.72% in the forecast period 2023-2029. In volume terms the market was around 0.10 Mn MT in 2023 and will grow to 0.13 Mn MT recording a CAGR of 4.12%. 

The increasing adoption of diabetic and dietetic food and beverages, the rising product demand as a substitute for sugar, the growing product utilization in oral care products, and the escalating demand from the food and beverage industry for nutritive sweeteners are some of the major factors propelling the market.

It is derived from glucose and has a sweet taste with about 60% of the sweetness of sucrose (table sugar). One of the key characteristics of sorbitol is its ability to attract and retain moisture. It is commonly used as a humectant in food products to prevent them from drying out while maintaining their freshness. It also acts as a thickening agent in certain food formulations, enhancing their texture and mouthfeel. 

It is widely used in the pharmaceutical industry as an excipient in producing tablets, syrups, and other oral medications. It helps improve the taste, stability, and palatability of these products. It also finds extensive applications in oral care products, such as toothpaste and mouthwash. Sorbitol is known for its low-calorie content, making it a popular choice in sugar-free or reduced-sugar products. It provides sweetness without the same caloric impact as regular sugar, making it suitable for individuals with diabetes or those intending to reduce their caloric intake. Additionally, it is used to produce cosmetics, personal care products, and certain types of paper. 

Companies such as Unilever, Patanjali, Wipro and Colgate are the major end use consumers for sorbitol. It is also used in papers, explosives, tobacco and mortar & concrete industry to some extent.

SANSTAR LIMITED STRENGTHS
1. One of the largest manufacturers of maize based speciality products and ingredient solutions in India with diverse product portfolio; They have grown with Revenue and PAT CAGR of 45% and 105% over Fiscal 2022-2024
2. Speciality products and ingredients solutions player catering to diverse industry segments and poised to benefit from mega industrial trends
3. Their strategically located, sustainability driven, state of the art manufacturing facilities
4. Global presence in a market with high entry barriers
5. Strong financial growth alongwith robust performance metrics
6. Two Generations of Promoters with domain knowledge
7. Well positioned to leverage the large opportunities in speciality products and ingredient solutions industry
8. Large, diversified customer base with long lasting relationships

SANSTAR LIMITED STRATEGIES
1. Expand their manufacturing capacities to capture additional market share
2. Leverage their industry-leading capabilities by continuing to diversify their customer base and increase wallet share with existing customers
3. Increase their global footprint and augment growth in current geographies
4. Increase the revenue contribution from derivative products and scale up organic ingredients segment
5. Foray into manufacturing of Ethanol through leveraging their maize sourcing capabilities

SANSTAR LIMITED RISK FACTORS & CONCERNS

1. During the peak arrival season of maize harvesting, their Company procures and stores significant quantities of maize which is the primary raw material required for the manufacturing of their Company’s products and for the purpose of doing the same significant amount of working capital is required.
2. The Company sells its products for specific use by certain industries.
3. Their proposed plans with respect to funding the capital expenditure requirement for expansion of the Dhule Facility are subject to the risk of unanticipated delays in obtaining approvals, implementation and cost overruns.
4. The Company exports its products to various geographies across the globe.
5. They are unable to trace their historical secretarial records prior to calendar year 2006.
6. The Company is dependent for its raw material requirement on a few number of raw material suppliers who are local farmers located near their Manufacturing Units and suppliers in ‘mandis’ which are unorganized marketplaces.
7. Their Company for majority of its domestic sales is dependent upon its customers located in the western region of India.
8. The primary raw material required by their Company i.e., ‘maize’ has an increased demand in different sectors such as feed manufacturers, ethanol manufacturers and Food and Beverage industry which may put a strain on supply of maize to adequately cater the demand of the industry in which they operate.
9. Their profitability, business and commercial success is significantly dependent on the performance of the food industry as a whole as well as their customers operating in the food industry.