The Hindu Business Line : Triveni Engg to set up sugar plants in Western UP

TRIVENI Engineering & Industries plans to shore up its sugar production capacity by setting up two greenfield factories in western Uttar Pradesh. The company, which is already among the country's largest sugar producers, has a total crushing capacity of 29,500 tcd (tonnes crushed per day).Triveni Engineering is yet to disclose details of the new units, locations of which are not being revealed at this stage. The plan is to focus on western UP, which is considered to be the country's premier sugar belt.

The company, said Mr Tarun Sawhney, Corporate Vice-President, proposes to cater to the increased demand for sugar in India. The domestic sugar industry has grown considerably with the recent establishment of a number of small-sized plants.

In certain other countries, the trend is towards consolidation of capacity, with serious emphasis laid on relatively larger units. In Thailand and Brazil, for instance, the average sugar crushing capacity is 10,300 tcd and 9,200 tcd respectively, as against the Indian average of 3,500 tcd. "We plan to increase production by setting up new plants as well as by expanding the crushing capacity of our existing unit at Deoband (in Uttar Pradesh.) Sites for other sugar mills are being explored," Mr Sawhney said. The idea is to improve economies of scale, make the most of the Uttar Pradesh Government's policy on sugar and consolidate its position in the growing domestic market, he added.

Triveni Engineering specifically needs funds to set up a new 7,000-tcd plant at Sabitgarh in Uttar Pradesh. The project will be financed wholly through the company's forthcoming equity issue. The latter will also back its co-generation plant at Khatauli, where external sale of electricity has already commenced.

Besides, Triveni has lined up expansion programmes for its engineering business (located in Karnataka), which chiefly comprises turbines and gears. Incidentally, the company had started off manufacturing small turbines in 1968. Triveni Engineering has on another front launched Triveni Khushali Bazar, keeping in mind the exact requirements of sugarcane growers.

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