M/s. Dhampur Sugar Mills Limited Had the Land, the Region, and the Ambition. We Helped Them Find the Right Product.
M/s. Dhampur Sugar Mills Limited Had the Land, the Region, and the Ambition. We Helped Them Find the Right Product.
A well-established agro-industrial group in Uttar Pradesh was ready to diversify. Potato starch manufacturing turned out to be the answer sitting right in their backyard.
Dhampur Sugar Mills Limited has been a strong presence in Bijnor's agro-industrial landscape for years — built on sugar manufacturing in one of India's most agriculturally productive belts. When the management decided it was time to diversify, they wanted something grounded in regional reality, not just a promising sector on paper. That's the brief they brought to NPCS.
After assessing the client's location, raw material ecosystem, and investment objectives, our recommendation was potato starch manufacturing. The reasoning was practical. Uttar Pradesh ranks among India's top three potato-producing states, and Bijnor sits right in the middle of that supply belt. For a business already rooted in the region, access to high volumes of fresh potato at competitive prices is a natural advantage — not a procurement challenge.
What strengthens the case further is how many industries potato starch serves. Food processing is the largest buyer, but the product also goes into pharmaceutical formulations, paper and board coating, textile sizing, adhesives, and biodegradable packaging. That kind of diversified demand base makes the business far more resilient than a single-sector play. There's also a meaningful import substitution opportunity, with India still importing specialty and modified starches in significant quantities — and export demand from markets in Southeast Asia, the Middle East, and Europe is growing steadily.
The NPCS feasibility study covered the full picture. We assessed the wet-milling production process, plant layout, machinery requirements, and quality systems. On the financial side, total project cost was estimated at Rs. 8–15 crore, with projected annual turnover of Rs. 20–40 crore at optimum capacity, net margins of 12–18%, an IRR of 18–25%, and a payback period of 4–6 years. The report also outlined the expansion pathway into higher-value modified starches — oxidised, cationic, and cross-linked variants — which command premium pricing and open additional buyer segments as the business matures.
After reviewing the complete DPR, Dhampur Sugar Mills moved ahead — initiating site finalisation, detailed engineering, and equipment vendor shortlisting. The project was in motion.