Dharani Sugars and Chemicals Ltd is set to enhance its capacity by setting up a Rs 335-crore integrated sugar complex at Villupuram in Tamil Nadu. The new complex is expected to commence operations in September.
Speaking to reporters on the sidelines of the annual general meeting, Palani G Periasamy, executive chairman of Dharani Sugars and Chemicals, said the complex would comprise a sugar plant with a capacity of 3,500 tonne-crushed per day (tcd) that can be ramped up to 5,000 tcd, a 22 mega watt co-generation power plant and a distillery of 100 kilo litre per day (klpd).
Of the total investment, Rs 91 crore had come by way of equity and internal accruals, while the remaining through bank loans, he said.
The company has also expanded its existing distillery at Dharani Nagar to 60 klpd from the 30 klpd. Its industrial alcohol business registered total sales of Rs 25.94 crore as against Rs 23.77 crore in the previous year.
Periasamy said the company was arranging for purchase of harvesters at a cost of Rs 10 crore to overcome the difficulty of securing services of agricultural labourers for cane farming, planting and other related activities.
On power plants, he said currently the installed capacity was about 18 Mw, which would be increased to 40 Mw. These plants involving Rs 150 crore would be bio-mass and multi-fuel based. This is part of the Rs 335 crore investment.
According to Periasamy, sugar production in 2008-09 is expected to decline 45 per cent to 14.6 million tonnes as compared with 26.33 million tonnes in 2007-08.