Shree Renuka fires 900 workers at its Brazil mills

Clarifying its decision to the media, it said its two subsidiaries- Renuka do Brasil and Renuka Vale do Ivai- keep optimising their manpower in the normal course of business

Leading sugar refiner Shree Renuka Sugars has sacked 900 workers at its two mills in Brazil as part of an exercise to optimise manpower.

The company informed this to the stock exchanges while clarifying media reports in this regard.

BSE and NSE had sought clarification from the company on the report.

In its reply, Shree Renuka Sugars said its two subsidiaries - Renuka do Brasil and Renuka Vale do Ivai - keep optimising their manpower in the normal course of the business.

"...the aforesaid relieving of the employees is a part of that process," the filing said.

Mumbai-based Renuka Sugars had in 2010 forayed into Brazil, the world's largest sugar producer, by investing Rs 1,765.10 crore to acquire stakes in Renuka do Brasil and Renuka Vale do Ivai.

However, the company is facing financial crunch due to low realisation from sugar as well as ethanol. It also tried to partly divest its business in Brazil.

Shares of the company fell 1.45 per cent to settle at Rs 14.24 a piece on BSE on Wednesday.