Mumbai, May 03 (UNI) Bihar based Riga Sugar Company Ltd, a flagship of Dhanuka Group, is planning to expand the crushing capacity of its sugar mill from 3500 tons per day to 5000 tons per day with an investment of Rs 40 crore, including the additional working capital requirements.
The Company plans to finance the aforesaid project through issue of shares offer in the domestic market or Global Depository Receipts (GDR) or Foreign Currency Convertible Bonds (FCCB) to be completed by 2006-07, a company release issued today said.
The expansion plan also envisages setting up an ethnol plant having a capacity of 45 Kilo litre per day (KLPD) and an ENA plant with a capacity of 25 KLPD in its distillery Unit. Diversification in the distillery unit will ensure increased capacity utilization leading to forward integration.
The expansion project would be implemented under the guidance of Vasantdada Sugar Institute, Pune. Once the project is implemented, the sugar recovery percentage is expeced to go up and there would also be savings in Bagasse and power generation.
After successful implementation of the Sugar Mill expansion, the Company proposes to undertake the co-generation project for generation of electricity at an estimated cost of Rs 20 crore.
UNI VS PM AW1543