Chennai-based Ponni Sugars (Erode) Limited is planning to set up a distillery near Erode, close to its sugar mill, with an investment of Rs 72 crore.
Speaking to Business Standard, N Ramanathan, managing director, Ponni Sugars (Erode) Limited, said the distillery, 30 km from the sugar mill, would have a capacity of 60 kilolitre per day. The proposed investment would be funded through internal accrual and debt.
The company has acquired 25 acre of land for the project and has submitted application to the state government for issue of distillery licence. “We hope to receive the licence in the next six months,” said Ramanathan.
The company reported a net profit of Rs 12.26 crore in 2008-09 as against a loss of Rs 1 crore in 2007-08. “The recovery in sugar and molasses prices coupled with higher sugar recovery helped the company post creditable results,” he said.