Kesar unviels Rs 200 cr expansion plan

Kesar Enterprises (KEL), a Mumbai-based integrated sugar manufacturer, has chalked out a major expansion plan with a capital expenditure of Rs 200 crore.

The ongoing modernisation of its existing sugar plant in Uttar Pradesh will cost Rs 12 crore in which one GRPF and one rolling mill would be installed.

Besides, sugar mill will be inter-connected with the new power unit. The plant will commence production with this modernisation by the end of this calendar year.

KEL has lined up mega modernisation plan in its sugar unit, details or which would be worked out very soon, a company source said.

With all these modernisations on stream, the capacity of sugar mill would be expanded to 10,000 tonne crushing per day (TCD) from 6,500 TCD now.

The company is working on the a 25 MW bagasse-based cogeneration power project at Baheri, nearby its existing sugar unit at an investment of Rs 90 crore. This plant would avail the company savings from state government's hectic power purchase, income tax exemption, carbon credits and capital subsidy to mention a few under the recently announced Industrial policy of the Uttar Pradesh government.

The company has signed a power purchase agreement (PPA) with Uttar Pradesh State Electricity Board (UPSEB) to sell the additional power at Rs 3.11 per unit power for the next five years.

In view of increasing demand, the company has decided to expand capacity in the infrastructure division. The capacity of distillery unit is set to increase to 70,000 litre per day from 50,000 litre per day. The investment modalities are being worked out for this plant.

KEL has reported 8 per cent growth in its turnover at Rs 279.56 crore for the year ended June 30, 2006, from Rs 259.59 crore in the corresponding period last year. But, the net profit for the period remained rangebound at Rs 18.30 crore as against Rs 18.63 crore last year.