Dollex bags Godavari Manar SSK lease

Dollex Industries, one of the largest manufacturers of ethanol in Karnataka, has bagged the tender to lease the coveted Nanded-based Godavari Manar SSK, a cooperative sugar manufacturing facility, with a capacity of 2500 tonne crushing per day (TCD) for a period of six years starting from the 2006-07 sugar season.

A group of ministers (GoM) awarded the tender in favour of the company after it was referred to by the commissioner over some issues.

The company had quoted Rs 65 per tonne, 50 per cent more than than its closest rival in the bidding process over and above the Rs 1.25-crore offered by the company as lease rent per crushing season.

Currently, Dollex Industries manufactures extra neutral alcohol (ENA) and by-products and has chalked out Rs 3 crore investments to upgrade and overhaul the ENA and its by-products' unit, making it operational well in time for this year's sugar season, when it expects to crush at least 3,00,000 tonne cane.

The company estimates that the current production estimates would add Rs 66 crore to its turnover and Rs 6 crore to its net profit for the current year.

"We see a dramatic growth in ethanol production because of regulated blending of ethanol from the uniform excise policy for the states and union territories (UTs). The new policy came as a natural benefactor for our operations in Gulbarga, Karnataka, which will generate more revenues due to increased ethanol demand," Anis Khan, managing director of Dollex Industries said.

The company plans to set up an ethanol unit with a capacity of 30 kilo litres per day (klpd) at an estimated cost of Rs 22 crore at the Godavari sugar mill premises at Nanded.

The unit will be operational only by the end of March 2007, when the first crushing season ends. Dollex already has a 40-klpd potable alcohol unit in Goa apart from a 30-klpd ethanol-cum-rectified spirit manufacturing facility in Karnataka.