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Annual Report 2017

Sugar Business

Rusagro Group is one of Russia's largest sugar producers.

The company consistently ranked among Russia's top-3 largest sugar producers in 2013–2017. At the end of 2017, according to Nielsen, Rusagro came second with the market share of 15% and secured the 1st place among manufacturers of lump sugar, with the market share reaching 47%, reflecting the company's leading position in the sugar segment.

Up to and including 2015, Rusagro's sugar business comprised of six plants located in Tambov and Belgorod regions of Russia.

In 2016, as a result of a takeover of Razgulay company, the company's sugar business included four more enterprises: Kshensky Sugar Refinery and Krivets Sakhar in Kursk region, Otradinsky Sugar Refinery in Oryol region, and Hercules Cereal Factory in Voronezh region.

The total production capacity of sugar beet processing plants increased by 58% in 2013–2017, up to 53,000 tons per day.

In 2017, as a result of modernization of production plants in Kursk Region, the total production capacity of the Company's sugar plants increased by 5%.

Beet sugar production increased by 106% in 2013-2017 and hit a record high of 984,000 tons. In 2017, sugar production increased by 22%, including beet sugar production increased by 31%.

Company's exports increased 8.4 times in 2017, from 6,000 tons in 2016 to 49,000 tons in 2017. Rusagro began exporting sugar to Mongolia, Turkmenistan and Uzbekistan.

Over recent years, the company has increasingly focused on the development and implementation of innovative technology, seeing it as one of the key sources of long-term sustainable growth. Sugar business segment is one of the Company's most high-tech businesses.

In 2014, Rusagro launched a program called World-Class Production in our sugar business.

Some prominent projects of the Company included the launch of a sugar recovery facility in 2016 at Znamensky Sugar Refinery, where molasses coming from three sugar plants in Tambov region is processed into extract for subsequent sugar production. The project was just the second case of introducing this technology to Russia. Its application makes it possible increase sugar production output at the plant by 40,000 tons by reducing losses in beet processing.

Moreover, deep processing technology provides for production of about 4,000 tons of betaine per year. It is planned to export it to foreign markets.

At the end of 2017, the group launched construction of a second facility for sugar recovery from beet molasses at Chernyansky plant in Belgorod region. Additional molasses processing will reduce sugar loss and increase sugar yield by 74,000 tons. In addition, about 22,000 tons of betaine will be produced per year.

In accordance with the Group's general strategy of the Group, the sugar business unit continues to actively promote its own brands and increases its presence in all market segments of cubed and packaged sugar.

As of today, the group's portfolio includes the following brands: Russian Sugar, Chaikofsky, Mon Cafe and Brownie. Rusagro is constantly working to bring new sugar products to the market. In 2015, the sugar business line began operations in a new category: cereals. In May 2015, Rusagro began packaging long-grain raw rice in off-brand transparent film packages. And in December 2015, a new Warm Traditions brand was introduced to the market. Long-grain steamed rice, long-grain raw rice, round grain rice, and buckwheat are sold under this brand.

 

Contacts:

General Director of Sugar Business:

Nikolay Zhirnov

tel.: +7 (495) 363 16 61

e-mail: rusagrogroup@rusagrogroup.ru

 

Commercial Director:

Timoafei Pavlov

tel.: +7 495 363 1661

e-mail: TPavlov@rusagrogroup.ru

 

Distribution Division Managers:

Alexandr Fikshmul

tel.: +7 495 363 1661

e-mail: afikshmul@rusagrogroup.ru

 

Ivan Boev

tel.: +7 495 363 1661

e-mail: iboev@rusagrogroup.ru

 

Head of wholesales:

Ruslan Tarasenko

tel.: +7 495 363 1661

e-mail: b2bsugar@rusagrogroup.ru

 

Head of Procurement:

Andrey Balachikhin

tel.: +7 495 363 1661

e-mail: ABalachikhin@rusagrogroup.ru

 

HR Director:

Olga Fedorova

tel.: +7 495 363 1661

e-mail: ofedorova@rusagrogroup.ru

 

Сводная ведомость результатов проведения специальной оценки условий труда РАЦ за 2016 г. (Legal Information in Russian)