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Kohinoor Mandal

Kolkata , Dec. 19

SUGAR major Balrampur Chini Mills Ltd has consolidated its numero uno position in the industry by commissioning its first greenfield project - an integrated sugar complex - at Haidergarh in Uttar Pradesh on schedule.

According to a company spokesperson, the total sugar producing capacity of the company has now increased to 29,000 tonnes crushed per day from 25,000 tonnes crushed per day.

The Haidergarh project consists of a 4,000 tonnes crushed per day sugar plant and a 20 MW co-generation power plant.

However, the project registered a slight cost overrun. Initially, the project cost was estimated at Rs 130 crore but it ended at Rs 140 crore. "This is a minor increase and it is within the permissible limits when it is compared against the total project size,'' the spokesperson told Business Line.

Even before the commissioning of the Haidergarh plant, Balrampur Chini established itself in the domestic market as the company with the largest production base.

Recent capacity addition further consolidated its leading position.

However, if the three sugar companies of Mr. K.K. Birla — Oudh Sugar, Govind Sugar and New India Sugar — are taken as a single unit, then its production base (over 30,000 tonnes crushed per day) is more than that of Balrampur Chini.

The Birla sugar group owns seven sugar plants of which four are in Uttar Pradesh and the rest in Bihar.

"With the expansion in the production base, the per unit cost of sugar production in our company will come down. Though it changes every year, as so many other factors are involved, still it is we are at an advantageous position," the spokesperson said.

Balrampur Chini is also expanding its alcohol capacity. Next month, it will be commissioning its new 60 kilolitres per day distillery, which is located adjacent to its Bhabnan factory.

There is a 100 kilolitres per day distillery along with the Balrampur factory too.

The company is a major ethanol producer and it supplies to all the three leading oil companies, IOC, BPCL and HPCL. Balrampur Chini's ethanol is sold mostly in Punjab, Haryana and Uttar Pradesh.

As a by-product of the sugar producing process, Balrampur Chini also manufactures bio-fertilisers. The total capacity is 50,000 tonnes per annum.

It also produces IMFL (India Made Foreign Liquor) to meet certain obligations under its alcohol license. ndustry sources said that in the current financial year, 2003-04, Balrampur Chini might register a turnover of Rs 700 crore and a net profit of Rs 50 crore. In 2002-03, the company's turnover and net profit was Rs 667.58 crore and Rs 29.51 crore, respectively.

This year, it has exported a huge consignment of sugar to Bangladesh.

Meanwhile, the company is slowly going ahead with the marketing of its Balrampur brand of sugar.

The product is already launched in the western, eastern, northern and northeastern market.

"Selling branded sugar business is a new concept. It will take some time to establish itself. Moreover, developing a brand also takes time. So, we are going about with this business gradually," the spokesperson said.

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