The Hindu Business Line : Triveni to set up 3 sugar units

TRIVENI Engineering and Industries Ltd (TEIL) plans to set up three sugar plants and expand the present sugar factories. The company would commission a new sugar mill, with a capacity to crush 5,000-7,000 tonnes of sugarcane a day (tcd), at Sabitgarh in Bulandshar district by October. The Sabitgarh mill's capacity could be expanded further to 10,000-12,000 tcd.

The company has earmarked Rs 500 crore, over a three-year period starting April 2004, for its plans that include greenfield and brownfield options. "The company has already spent Rs 125 crore till date, rest of the amount will be spent during the next two years," said Mr Dhruv M. Sawhney, the company's Chairman and Managing Director. "Investments in engineering and gear units will be very small — in the range of about Rs 30 crore," he added.

Triveni would also increase the capacity of its Khatauli sugar mill from 11,750 tcd to 16,000 tcd by October. The Khatauli unit would also have power co-generation plant of 23 MW. Additionally, the company would commission two new units in western Uttar Pradesh with 5,000-7,000 tcd in 2006-07 sugar season. "We are yet to decide specific sites where we would have the factories though we would decide them shortly," said Mr Sawhney. Asked about specific investment plans for each of the unit, Mr Sawhney said the company was "yet to finalise" its plans. On the investment in the Sabitgarh unit, he said it was "over Rs 100 crore."

The company was in the process of tying up funds for the expansion, said Mr Sawhney, declining to divulge any further details on the amount of debt and equity that would go in. "We are yet to take a final decision on the exact debt and equity," he said. "We have relied a lot on the sugar development fund," he added.

During the 2004-05 sugar season (October-September), Triveni produced 38.14 lakh bags or 38.1 lakh tonnes.

"Our capacity in sugar manufacturing and power generation equipment is expected to double in the next three years," Mr Sawhney said. Once the expansion programmes are under execution, the company may consider investment in a distillery to produce alcohol/ethanol from sugar cane, he added. The company's branded sugar, Shagun, has witnessed about 50 per cent hike in sales, touching Rs 8.2 crore. It would consolidate its branded sugar sales in the North and launch it in Kolkata this year.

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