The Hindu Business Line : Empee Sugars triples net to Rs 1.1 cr

Empee Sugars and Chemicals Ltd has reported a tripling of net profit to Rs 1.10 crore on an income of Rs 30.19 crore for the fourth quarter ended June 30, 2006.

During the corresponding period in the previous year, the company reported a net profit Rs 39.52 lakh on an income of Rs 37.75 crore.

For the 12 months ended June 30, the company has reported a net profit of Rs 7.97 crore (Rs 1.09 crore) on an income of Rs 99.36 crore (Rs 76.13 crore).

Expansion plans

According to a press release from the company, is planning expansion into Tamil Nadu and Karnataka.

The company has sought allocation of sugarcane areas from the State Governments. It intends setting up integrated facilities in these places with sugar mills having a capacity to crush 5,000 tonnes sugarcane a day and expandable up to 8,000 tonnes, a 20 MW cogeneration unit and a 60 kl a day distillery.

Investments

According to company officials, this would mean investments of about Rs 230 crore at each location. The sugar mills would cost Rs 105 crore, cogeneration Rs 70 crore-80 crore and the balance would be for distillery.

On the preferred locations, the official said that in Karnataka, the company is hoping for allocation of sugarcane areas in Bijapur, where sugar recoveries go higher than 12 per cent on each tonne of cane.

The release, which quoted the Empee Chairman, Mr M.P. Purushothaman, said that the expansion of its Naidupet sugar mill and the setting up of the 20 MW cogeneration facility have started. The sugar mill capacity will be increased to 3,500 tonnes from 2,500 tonnes. The distillery capacity is also being doubled to 60 kl.