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Formal nod from State expected in a week

Jayanta Mallick

Kolkata, July 18

Dollex Industries, a listed sugar, ethanol, industrial alcohol and liquor player, is poised to buy assets of a sick Maharashtra cooperative sugar unit. Mr Anis Khan, CEO of the company, confirmed to Business Line that the Maharashtr a Commissioner of Sugar has informed the company that it has turned out to be the highest bidder for the mill, lying idle for around four years.

He said the mill’s stressed assets, funded by Nanded District Cooperative Bank, were put on auction for outright purchase. “A formal decision, however, by the State Government, is expected within a week. The assets are capable of crushing 1,250 tonnes of cane per day and may be ready for operation before this October crushing season,” Mr Khan said.

If the deal is cleared, this would be second acquisition of Dollex in the Marathwada region. Last August, it picked up a sick sugar cooperative mill of the region through the tender process. However, the first acquisition was on a 6-year lease.

Dollex had bid to purchase the sick co-operative sugar unit — Kalamber Vibhag SSK Ltd — located in Nanded, Maharashtra. The acquisition is valued at Rs 25 crore and the company plans to spend an additional Rs 10 crore in upgrading the capacity to 3,500 TCD within a year’s time.

It has also planned to add 1 lakh kilo litre of ethanol capacity, and 30 MW of co-generation of power using cane waste. The total expenditure could be Rs 50 crore.

A final announcement, however, would be made after a formal decision on the sale of Kalamber Vibhag by the Group of Ministers of Maharashtra set up for the purpose.

According to sources, amongst 24 bidders for the unit were Renuka Sugar, KM Sugar and Dhampur Sugar.

Mr Khan said it also plans to bid for another cooperative mill in the region, to be put on auction shortly by the State authorities.

More Stories on : Sugar | Mergers & Acquisitions

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