Riga Sugar Company Ltd chalks out Rs 40 crore expansion plan

Kolkata, May 03 (UNI) Riga Sugar Company Ltd has prepared an ambitious plan of Rs 40 crore for expansion,which is expected to be completed by the end of this fiscal.

Riga Sugar Chairman O P Dhanuka today said the crushing capacity would be increased from 3,500 tcd (tonnes crushed per day) to 5,000 tcd.

He said the company plans to set up an ethanol plant having a capacity of 45 klpd (kilo litres per day) and an ENA plant with a capacity of 25 klpd.

Mr Dhanuka said the expansion programme would be financed through issue of shares either in the form of GDR or FCCB. However, the company does not intend to raise money from the domestic capital market.

He said after the completion of the expansion programme, the company plans to set up a co-generation power plant at a cost of Rs 20 crore.

In the first six months, ending March 31, 2006, Riga's net profit was Rs 9.03 crore (Rs 3.81 crore) and sales increased from Rs 47 crore to Rs 60 crore.

The company has sugar mills located in Sitamarhi in Bihar.

UNI TJP KK DB1925