The Hindu Business Line : Balrampur Chini plans another facility for sugar in eastern UP

Corporate - New Projects
Agri-Biz & Commodities - Sugar

Balrampur Chini plans another facility for sugar in eastern UP — Announces 60 pc growth in Q1 net

Our Bureau

Kolkata , July 22

SUGAR major Balrampur Chini Mills Ltd on Friday announced that it would be setting up another integrated sugar complex with a cogeneration power plant and a distillery at Maknapur in eastern Uttar Pradesh.

The complex would have a plant with 7,000-tonn-crushed-per-day (TCD) crushing capacity, a 23-MW power unit and a 60-kilo-litres-per-day (KLPD) distillery. The capital cost of the project is Rs 300 crore and it is scheduled to be commissioned by November 2006.

The financing of the project is, however, not yet finalised. According to Mr Vivek Saraogi, the board of directors would soon work out the details of the project's finance. Meanwhile, the company has started acquiring lands for this project.

He was talking to reporters after chairing the 30th annual general meeting of the company. This would be third sugar complex that the company is building in the last few years.

About two years ago, it had set up the Haidergarh complex.

The company is likely to commission another facility, Akbarpur complex in eastern Uttar Pradesh (with a 7,000-TCD sugar unit and an 11-MW power plant), by November this year.

On the completion of these two sugar complexes, Balrampur Chini's total capacity would jump to 49,000 TCD, cogeneration power would be 75 MW and 240 KLPD of distillery. Earlier addressing the shareholders, Mr Saraogi said that the future of the Indian sugar industry, in terms of price, appears strong and stable for the next two to three years.

Talking about ethanol, he said that his company, like other sugar companies, had already entered into long-term agreements with oil companies. It would give the sugar company a steady stream of revenue against the vagaries of the sugar returns. Similarly are the earnings from the cogeneration power units.

For the year ended March 31, 2005, Balrampur Chini recorded a 15 per cent growth in turnover to end at Rs 930.26 crore. Net profit jumped to 125.06 crore. It announced a dividend of 160 per cent.

In the first quarter of the current financial year, Balrampur Chini's gross turnover increased to Rs 220.89 crore against Rs 218.66 crore in the corresponding quarter of 2004-05. Net profit jumped by 60 per cent. It went up to Rs 40.03 crore from Rs 25.12 crore.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page