Sakuma Exports Limited

Climate Impact & Sustainability Data (2016-03 to 2017-03, 2019-20, 2022-2023)

Risk mitigation strategies using market data analysis and senior management expertise

Frameworks Used: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Companies Act, 2013

Lower GDP growth & slowdown in consumption resulting in weakening consumer sentiments and lower demand.
COVID-19 pandemic severely impacted businesses & society.
Weakening global economic conditions due to strained US-China relations, slow economic activity, and liquidity challenges.
Price mismatch, slow demand, tight liquidity, partial recessionary conditions, and withdrawal of investments in non-sugar business segments.
Unstable Indian Rupee exchange rate against major foreign currencies.
Foreign Exchange Risk
Commodity Price Risk
Risk elements in business transactions
Physical risks to cargo

Competitive, profitable & reasonable working, particularly after the COVID-19 pandemic outbreak.
Geared up to seize opportunities to sustain & improve business volume.
Minimizing foreign exchange fluctuation by entering into forward contracts.
Export orders immediately tied up with suppliers for procurement.
Due diligence in selecting buyers and suppliers; using advance payments, irrevocable letters of credit, and ECGC cover.
Adequate insurance for warehouses and cargo (CIF/C&F basis).

Geopolitical conflict in Europe and global supply chain disruptions led to unprecedented inflation in food, energy, and commodity prices.
Aggressive monetary tightening measures from central banks worldwide led to further pressure on emerging economies.
Widespread inflation impacted FMCG & food consumption as consumers adjusted volumes and prioritized essentials.
Slowdown was more pronounced in rural markets.
Monsoon has a direct impact on cane farming and a weak monsoon can impact the availability of cane and hence sugar for exports.

The Executive Chairman & Managing Director mitigate the risk with the help of their depth of knowledge of market, assistance of senior management and forecast based on various data available with your Company.
Your Company has developed the analysis of market data which helps in decision making and to ensure the mitigation of the risk.
Export orders are immediately tied up with suppliers for efficient sourcing.
Advances of 10-20% from overseas buyers, irrevocable letters of credit, payment at sight documents, ECGC cover, etc. are obtained, wherever considered necessary.
All our warehouses are adequately insured. For imports on CIF basis the supplier obtains insurance cover and for import on C& F basis insurance cover is obtained by the Company. For export shipments made on C&F basis, insurance is covered by the buyer and in case of orders on CIF basis, insurance is obtained by the Company. Warehouse to Warehouse insurance cover is obtained for domestic trade.