New Horizon likely to go on stream by early 2006

EID Parry expects Pondicherry-based New Horizon Sugar Mills Ltd, which has been shut down for nearly two years, to go on stream by the beginning of 2006.

EID Parry was the highest bidder for taking possession of New Horizon Sugar Mills Ltd at Rs 50.20 crore under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, recently.

P Rama Babu, managing director, EID Parry, told Business Standard that the New Horizon Sugar Mills has a crushing capacity of 2,000 metric tonnes and will add 50,000 tonnes of sugar a year.

EID Parry has four sugar mills at Nellikuppam, Pugalur, Pudukottai and Pettavaithallai, all in Tamil Nadu, with a total crushing capacity of 13,800 TCD per day.

"We are positive that the Madras High Court will give its permission and confirmation when the session commences," he added. The security enforcement committee of the bank will also give its consent on the deal as Indian Bank, Vijaya Bank and City Union Bank are the debtors of the New Horizon Sugar Mills.

D Kumaraswamy, chief financial officer, EID Parry, said that the company will invest another Rs 3 to Rs 4 crore in the New Horizon sugar mill to bring it back to working condition.

Babu said the close proximity of New Horizon Sugar Mills Ltd to Nellikuppam plant in Cuddalore was the compelling factor for EID Parry to acquire the Pondicherry sugar mill.

"We have already paid Rs 12.55 crore ( 25 per cent) for acquiring the New Horizon sugar mill. While 50 per cent will be funded by internal accruals, the remaining will raised through debt," said Kumaraswamy.