Dollex Industries acquires Godavari Manar Sugar Mills

Dollex Industries Ltd has announced that the Company has bagged the tender to lease the coveted Godavari Manar SSK Ltd., a Co-operative sugar manufacturing facility with a capacity of 2500 TCD located in Nanded, Maharashtra for a period of 6 years starting from sugar season 2006-2007.

As per the tender outcome, the Company had quoted Rs 65 per tonne more than 50% higher than its closest rival in the bidding process over and above the Rs 12.50 million offered by the Company as lease rent per crushing season.

Since the price offered by the Company was the highest among all participants., the Group of Ministers (GOM) awarded the tender in favour of the Company.

Godavari Manar SSK, which also houses its own school is valued at over Rs 500 million and has a long history of operation. The ´cane area´ around the factory is fully developed with surplus cane available since its first year of operation. Moreover, good rains this year have also ensured good cane availability so as to ensure maximum capacity utilization.

The Company plans to invest Rs 30 million to upgrade and overhaul the unit, making it operational well in-time for this years sugar season during which the Company expects to crush atleast 300,000 tonnes of cane boosting turnover by Rs 660 million and profits by Rs 60 million for the current year.

Source : Equity Bulls

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