Ponni Sugars (Erode) Ltd has started its Rs 110-crore cogeneration project, which is targeted for commissioning in March 2012. According to information provided by the company to the stock exchange, the project has achieved financial closure with a Rs 65-crore term loan from Canara Bank. Order for all major items has been placed.
The 15-MW plant will have provision to be expanded to 19 MW with supplementary fossil fuel. For 2010-11 the company has reported a net profit of Rs 18.61 crore on a turnover of Rs 269.48 crore. During the previous year the company reported a net profit of Rs 36.85 crore on a turnover of Rs 244.64 crore. Decreased cane volume, low sugar recovery and depressed prices of sugar and molasses contributed to the drop in profit.