K M Sugar plans Rs 200 crore expansion

Mumbai, Apr 10 (UNI) Uttar Pradesh-based sugar producing major, K M Sugar Mills Limited, is in the midst of a Rs 200 crore expansion programme involving the setting up of a 5,000 TCD new sugar unit as well as a 15 MW co-generation power plant, a release issued here said.

The company, which has already completed the expansion of its Faizabad sugar unit from 4,500 TCD to 6,500 TCD, is also exploring possibilities of acquisition of existing sugar units. The company had entered the capital market to raise funds for the purpose in October 2005.

Pointing out that the expansion of crushing capacity of the existing plant to 6,500 TCD will enable the company to crush maximum cane in the limited crushing season, thus reducing the cost of production, the release added that the expansion of the sugar crushing capacity will also enable it to retain the cane availability from farmers and prevent diversion of cane to other factories.

This will help the company to reduce dependency on the market for purchase of molasses for its distillery division, added the release.

Apart from the expansion of the sugar crushing capacity, the company also proposes to set up a 60 KLPD fuel grade ethanol plant in Ahmednagar, Maharashtra, at a cost of Rs 5-crore, which will be funded from internal accruals and term loans from banks.

The company has already taken on a 95-year lease, 9,000 sq. mts of land from Maharashtra Industrial Development Corporation (MIDC) at Supa Parner Industrial Area in Ahmednagar, the release said.

UNI JJ PP SKB1847