The Hindu Business Line : Shree Ambika Sugars merges power subsidiaries with itself

SHREE Ambika Sugars Ltd, an associate company of Thiru Arooran Sugars Ltd, has merged two of its cogeneration power subsidiaries with itself to emerge an integrated sugar mill with one of the largest cogenerating capacities in the country.

The two subsidiaries, Supreme Reliable Energy Ltd and Auro Energy Ltd, were merged with Shree Ambika Sugars Ltd last year to create a sugar mill with capacity to crush 9,000 tonnes sugarcane a day (tcd) and a cogeneration power capacity of 56 MW.

Supreme Reliable Energy operated a 40-MW bagasse-based cogeneration unit at Pennadam, Tamil Nadu, which is considered the single largest unit in India. Auro Energy operated a 16 MW cogeneration at Tuhili, Tamil Nadu.

Shree Ambika Sugars operates two sugar mills at both these locations, a 5,000 tcd plant at Pennadam, and a 2,500 tcd plant at Tuhili. A distillery at Pennadam with capacity to produce about 60 kilolitres of alcohol a day is being relocated.

The scheme of amalgamation involved allotment of 17 equity shares of Rs 10 each at a premium of Rs 30 for every 40 equity shares of Rs 10 each in Supreme Renewable Energy, and allotment of one preference share of Rs 100 for every preference share of Rs 100, according to Shree Ambika Sugars' annual report for 2003-04.

In Auro Energy, the scheme involves allocation of five equity shares of Rs 10 at a premium of Rs 30 a share credited as fully paid up for every 30 shares of Rs 10 each in Auro Energy.

As a prelude to the amalgamation, the capital of Shree Ambika Sugars was reorganised with 9.90 crore shares of Rs 10 each by the reduction of Rs 7.50 a share.

Every four shares of Rs 2.50 were then consolidated into single shares of Rs 10 each.

Both Supreme Reliable Energy and Auro Energy, commissioned in 2003 and 2002 respectively, were promoted by Mr Ram V. Tyagarajan, Chairman and Managing Director of Thiru Arooran Sugars Ltd, which holds 98.75 lakh shares in Shree Ambika Sugars (this capital has been reorganised following the capital restructuring.)

In 2003-04 the unit at Pennadam generated 261.68 million units and exported 199.51 million units to the State grid, generating revenues of Rs 58.58 crore. The unit at Tuhili generated 68.94 mullion units and exported 49.78 million units to the State grid, generating Rs 15.32 crore.

According to sources, the Thiru Arooran Sugars group, including its associates and subsidiaries, have a cogeneration capacity of over 110 MW. They have launched a major programme under the Clean Development Mechanism to upgrade their generation capacities to pave the way for revenue under carbon trading.

The cogeneration units, which use bagasse (sugarcane fibre) during the crushing season, will be able to use other agro waste during off-season. This will enable them to avoid using fossil fuels and resultant pollution.

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