The Hindu Business Line : AMR Agro diversifying into sugar

AMR Agro Farms Ltd (AMRAFL), into bio-fuels and contract farming, is diversifying into sugar through an acquisition from Shri Sangam Cooperative Sugar Factory, Belgaum district of Karnataka.

Part of the Hyderabad-based AMR Group, the company intends to build a 5,000-tcd capacity sugar unit with a 30- 32 MW co-generation of power and 60-80 KLPD ethanol plant at the same site in the next 1-2 years.

The acquisition would be in the form of a 30-year lease of the sugar unit on BOOT (build, own, operate and transfer) basis from Shri Sangam Cooperative Sugar Factory at Hidkal Dam in Karnataka.

The unit has been leased out as part of the Karnataka Government’s decision to privatise the sick units under the BOOT scheme.

The unit is semi-built and AMR plans to complete it and make it operational in the next 12-15 months, Mr Vijay Shiraguppi, CEO of AMRAFL, told Business Line.

The Shri Sangam Factory is situated in the sugar growing belt of Karnataka and has over 26,000 share holders of sugarcane growers in 30 villages.

AMARFL will invest Rs 200 crore in the unit.

The co-generation power plant from bagasse and ethanol from molasses, which represents future trends of the renewable energy is a good option for the AMR Group. These are CDM projects too and earn carbon credits, he said.

The AMR Group has diversified interests in mining, construction, irrigation contracts and real estate.

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