Lokmangal group plans Rs 500 crore expansion in sugar

Mumbai, Sep 28 (UNI) Solapur-based Lokmangal group today announced Rs 500 crore expansion plan of its business in milk and sugar industry in partnership with farmers in the region.

Briefing newsmen here, its founder chairman and Member of Parliament Subhash Deshmukh said the expansion plan is to be executed in the next two years. Replying to a question, Mr Deshmukh said the group would spend nearly Rs 300 crore on sugar industry expansion and remaining amount on dairy business by 2010.

When asked about funding the expansion plans, Mr Deshmukh said it would be done through a combination of both internal accruals and term loans from banks.

Post-expansion, he said, the group's sugar production capacity will augment to 2,500 metric tons as compared to the current capacity of 1,250 metric tons. The group has plans to 3 new sugar factories by 2010.

Responding to a query, Mr Deshmukh said its dairy business is likely to take a new shape with new powder production facility with a capacity of up to 10 tons of high quality milk power per day, while it would augment its cattle force by induction of about 10,000 cows.

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