Financial Daily from THE HINDU group of publications
Tuesday, Aug 03, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 03, 2004 |
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Agri-Biz & Commodities
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Sugar Corporate - Mergers & Acquisitions Balrampur Chini open to buying sugar mills in UP Our Bureau
Kolkata , Aug. 2 SUGAR major Balrampur Chini Mills Ltd is open to acquisitions outside its existing command area but within Uttar Pradesh, where its present operations are located. Mr Vivek Saraogi, Managing Director, said this at the company's 29th annual general meeting (AGM). According to him, there are no immediate future expansion plans of Balrampur Chini. The company has recently set up a greenfield integrated sugar complex at Haidergarh in Uttar Pradesh. Though there are opportunities to acquire factories in other states, Mr Saraogi ruled it out. He told the shareholders that monsoon in the company's catchment area was good and hoped there would not be any shortage of cane. The country's sugar production has dropped from 200 lakh tonnes in 2002-03 to 136 lakh tonnes in 2003-04 (October-September). In 2004-05, it is likely to drop by 5-10 per cent more. "Due to the drop in the sugar production, the surplus sugar present in the country is being consumed. This is good for the industry. We will restrict our operation in UP because we feel that the State will be driver of the Indian sugar industry's growth in future", he said. No raw sugar import: Meanwhile, Balrampur Chini has decided not to import any raw sugar as allowed by the Union Government under the advance licence scheme. According to Mr Saraogi, this scheme is attractive for those units which are having idle capacities and located near the port. The company is coming out with its Rs 60 crore rights issue from August 19 and it will open for a month. Each share will be priced at Rs 260 and carry a premium of Rs 250. All the resolutions placed at the AGM were passed unanimously by the shareholders. The company also finalised its first quarter results on Thursday. Gross turnover increased by 34 per cent to reach Rs 236.23 crore from Rs 176.40 crore. Net profit jumped almost 200 per cent to 25.12 crore from Rs 8.45 crore. Mr Saraogi also hoped that the Union Government increases the blending percentage of ethanol in petrol from five per cent to 10 per cent within next one year. Balrampur Chini produces 160 kilo litres of ethanol every day, of which 100 kilo litres are sold to the petroleum companies.
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