Upper Ganges reports 109 pc jump in profits

Kolkata, Aug 17: Upper Ganges Sugar&Industries Ltd today reported a 109 per cent jump in net profit to Rs 28.62 crore during 2005-06 (July-June) from Rs 13.69 crore earned in 2004-05.

Its turnover has increased by 16.85 per cent to Rs 443.31 crore in 2005-06 from Rs 379.39 crore registered in the previous year.

The company has declared a dividend of Rs 5 per share on increased capital.

Director Chandra Sekhar Nopany said Upper Ganges has plans to pump in about Rs 391 crore in capacity expansion over the next two years.

''Funds will be raised through internal accruals and debt. We may also seek funds from Sugar Development Fund (SDF) if needed,'' he added.

At the completion of the projects, Upper Ganges would have a consolidated crushing capacity of 20,000 tonnes crushed per day (TCD), a captive power generation capacity of 42 MW and a distillery of 100 killo litres per day, Mr Nopany said.

The company has undertaken a Rs 125 crore expansion project at Bharat Sugar Mills at Sidhwalia in Bihar to double capacity to 5,000 TCD from 2,500 TCD currently, along with a sulphur free sugar refinery and a co-generation plant with 18 MW. The projects are expected to start production for the season in 2007-08.

The company would spend about Rs 100 crore at Seohara in setting up a 24 MW co-generation plant and would also expand the capacity of its distillery at Seohara to 100 killo litres per day from the present level of 55 killo litres per day at an additional investment of Rs 36 crore.

Capacity in Hasanpur Sugar Mills at Samastipur, Bihar would be expanded to 5,000 TCD from the present level of 1,700 TCD at an investment of Rs 130 crore.

''All the projects are going as per schedule,'' the director said.

Mr Nopany said Upper Ganges has entered into an PPA contract with the UP government to supply power at a rate of Rs 2.86 per unit with an annual increase of three paisa. ''We will be supplying about 30 MW and the rest will be retained for captive use,'' he said.

Upper Ganges also has plans to enter into such agreement with Bihar government if possible.

Meanwhile, Nopany said the company is in talks with Union Oil Ministry and the oil company's in the country to frame proper price for ethanol.

''We have also submitted our proposals to the oil companies and proposed for a rate of Rs 27 per litre. Now we are waiting for the ethanol policy which is expected to be in place in October 2006,'' he said.

UNI