GMR plans 2nd sugar complex in Andhra

Hyderabad-based GMR Industries Limited, the manufacturing arm of GMR Group, is planning to set up another integrated sugar complex in Srikakulam district of Andhra Pradesh.

A decision to this effect was taken by the company's board of directors, at its meeting on June 28, GMR Industries informed the BSE.

"We already have a sugar complex at Sankli in the district. However, farmers have been bringing sugar cane from 50-60 kilometres to the complex, incurring transport costs. The decision to set up another sugar complex is to be closer to the farmers, making it a good business preposition," R Ramakrishnan, joint managing director of GMR Industries, told Business Standard.

"We are zeroing in on one of the villages in Jalamuru mandal in the district, and are going ahead in getting the necessary clearances, besides working out investment modalities for the complex, he said.

The new integrated sugar complex will have an initial capacity of 2,500 TCD (tonnes crushed per day), which can be scaled up to 3,500 TCD, he said.

The board of directors of the company also recommended a 15 per cent equity dividend and 8 per cent fixed dividend on preference shares.