Dhampur Sugar Mills Limited to expand distillery capacity at Asmoli unit

The Board of Directors of Dhampur Sugar Mills Limited in its meeting held today i.e., 23rd December 2020, through Video/Audio Conference means has considered and approved the expansion of distillery capacity by 100,000 LPD at Asmoli unit of the Company from 150,000 LPD to 250,000 LPD. With the proposed expansion, the total capacity of the Company will stand augmented from 400,000 LPD to 500,000 LPD.

The implementation of the expansion of distillery plant from 150,000 LPD to 250,000 LPD is expected to be completed within Ten (10) months, from the date of ordering of the main plant and equipment. Thus, the commercial production is targeted to commence in the Distillery with expanded capacity from 1st November 2021.

The funding for this expansion project will be through Banks (Rs. 9750 Lakhs) and internal accruals (Rs. 3250 Lakhs) The Proposed Capacity Enhancement shall be eligible for 50% interest subvention from Govt of India under their Scheme for boosting Ethanol Production in the Country.

Rationale for expansion project:

- With a view to augment ethanol production, Govt. of India has fixed better prices of ethanol produced from C & B Heavy Molasses, Syrup and Cane Juice.

- Producing ethanol from B Heavy Molasses /Syrup/ Cane Juice, not only assures higher price of ethanol but also reduces sugar inventory through sugar sacrificed in B Heavy / Syrup / Cane Juice.

- Company is capable of producing required Feedstock's like Molasses (B heavy and C heavy) / Syrup / Cane juice for production of ethanol with expanded capacity.

Shares of DHAMPUR SUGAR MILLS LTD. was last trading in BSE at Rs.164 as compared to the previous close of Rs. 162.05. The total number of shares traded during the day was 28121 in over 556 trades.

The stock hit an intraday high of Rs. 165 and intraday low of 140.6. The net turnover during the day was Rs. 4500024.

Source : Equity Bulls

Keywords