The Hindu Business Line : Ruia earmarks Rs 150 cr for sugar acquisitions

Kolkata-based Mr Pawan Kumar Ruia is planning acquisition of close to 3,000 tonne sugarcane crushing capacity in the near future. He has earmarked Rs 150 crore to fund the acquisition plan.

Apart from the sugar production, the acquisition would help him to add ethanol capacity to capitalise on the global move towards blended auto-fuel and addition of bagasse-based power generation capacity.

Mr Ruia is currently having 4,000 tonne crushing capacity coupled with 6 MW power generation through his UP-based outfit Kamlapur Sugar. The company is currently implementing a Rs 200-250-crore brownfield expansion project to enhance capacities to 7,500 tcd (tonne crushed per day).

The Rs 250-crore project — slated to be fully commissioned during the 2007-08 sugar season (October-September) — include expansion of power generation capacity to 30 MW and setting up of an ethanol capacity of 240 kilo litre per day.

Talking to mediapersons, Mr Ruia said that the full benefits of the expansion project undertaken by Kamlapur would be available during 2008-09. The company has registered a turnover of Rs 80 crore during the last fiscal. Asked about the possibility of hitting the capital market to fund plans on sugar business, Mr Ruia said: "Kamlapur is not going to capital market. I cannot comment about the rest."

More Stories on : Mergers & Acquisitions | Sugar

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