Siel to up capacity of UP units

Siel Ltd is planning to expand its sugar-crushing capacity to 27,000 tonnes per day from the present level of 17,000 tonnes at two locations in Mawana and Titawai in Uttar Pradesh and also create fresh capacity for producing 47 Mw power and a 180 kilolitre distillery unit.

All these projects that will be completed by the last quarter of 2006 will see a total investment of Rs 590 crore, which will to a large extent be funded internally.

The company had recently notified the stock exchanges on its willingness to sell its chemicals business and has appointed J M Morgan Stanley for purposes of identification and assessment of intending purchasers.

The company's chemicals business comprises products like caustic soda, liquid chlorine, hydrochloric acid and sodium hypochlorite. "It's not that chemicals is a bad business. But it did not fit in the scheme of things we have envisioned for the company," said Sidharth Sriram, chairman, Siel Ltd. He said the company wished to emerge as a sugar major.

He further said that the current phase of implementation would see the crushing capacity expand to 20,000 tonnes and the final phase should be completed before September-October this year. All ancillary projects like power and distilling operations will be ready by December this year.

The power generated will be made available for sale.