Simbhaoli Sugars commissions Greenfield sugar unit at Brijnathpur

India’s most energy efficient sugar plant

New Delhi, December 15, 2006: Simbhaoli Sugars Ltd (SSL) today announced commissioning of its Greenfield sugar unit at Brijnathpur (Ghaziabad, UP). Set up at a project cost of approx. Rs 127 crore, the plant has a capacity of 4,000 TCD (expandable to 5,000 TCD). The sugar produced from the plant would be very high quality sugar of less than 45 ICUMSA. The quality standards will enable Brijnathpur to export entire sugar to replace EU vacated refined markets.

The Brijnathpur sugar unit will produce sugar of the quality equivalent to EC grade and will operate through a Distributed Control System (DCS). Because of the extra-refined quality of sugar, the product from this unit will be used to cater the pharmaceutical and premium institutional clients of the Company. This sugar unit will set high standards in sugar manufacturing by producing top quality sugar with minimum wastage and high energy efficiency.

“We have given extra care to the quality of sugar being produced at our Brijnathpur unit. We would be using complete automation at this plant with an additional melting of all the sugar produced to ensure best standards of hygiene and quality to serve our clients, particularly the pharmaceutical and premium institutional clients which we have added in the past few months," said Mr G. S. Mann, Chairman & Managing Director, SSL.

Simbhaoli and Brijnathpur sugar plants of SSL will form a contiguous sugarcane area of over 1 lac hectare, starting form Garh Ganga to Dadri, which will have enormous opportunity to develop cane and multiple cropping systems within the entire cane command area.

The location of the plant is excellent for cane production and growth. With close proximity to the sugarcane hinterland and Simbhaoli sugar unit, the Company expects to enjoy synergies of operation. The plant is situated within the NCR and has proximity to the high consumption centers. The plant is having complete automation system supplied by Honeywell Corporation.

“We foresee substantial revenue generation from the ongoing crushing season with the commissioning of the Brijnathpur sugar unit. The Company is also starting production of sugar from its expanded capacity at the Chilwaria sugar unit. With this, the total sugarcane crushing capacity of Simbhaoli Sugars would reach to 20,100 TCD with an objective to produce 2,70,000 MT of sugar in a season", added Mr. Mann

The new sugar unit is a part of Rs 423 crore capex plans chalked out by SSL to avail the benefits of the UP incentive policy, 2004 of the Government. It will also be integrated with an 8 MW co-generation plant and an ethanol unit of 60 KLD by the end of FY07. This will make Brijnathpur, the India’s most energy efficient integrated sugar complex. Through these projects and expansions, the Company is actively derisking its business model by seeking additional revenue earners.

Source : Equity Bulls

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