Sugar ships to sweeten European tea market

Storm in a tea cup! Small Indian 'sugar' ships are going to dock in the European tea cups to sweeten make the beverage.

The Belgaum-based Ugar Sugar Works Ltd is setting up a plant to make 'sugar ships', sugar blocks in the shape of small ships, for the star hotels of Europe. The company has imported machinery from Germany and the plant will be ready by March 2006 in Ugar Khurd.

The Rs 350 crore BSE listed sugar producer has invested Rs 20 crore for the plant which will start operations on 6 June 2006.

"It is an artistic extension of the changing concept. Granule and cube shaped sugar is available at the party table these days. Sugar ship is totally different from the current style. These are sugar blocks in the shape of small ships, which will float for 10-15 seconds on the tea, depending on the density of the liquid. After that it will dissolve, thus the sweet experience. The fine finished bottom-line of the sugar ship will be designed for a perfect floating," said Shishir Shirgaonkar, director, Sugar Works.

German company Clockner has developed the technology for Ugar. The company is planning an annual production of 4.5 million boxes of 250 gm each. Ugar has received government approval for setting up 100 per cent export oriented unit for the manufacture of sugar ship.

Ugar has tied-up with German advertising firm Fragies for marketing the sugar ship. The company is aiming the entire European market, where the demand is high. If the demand beats the production, Ugar will start one more plant to increase the output, an official said.

In this crushing season, the company has produced 4.11 lakh tonne sugar bags. Ugar has taken two sugar factories on lease, one in Tasgaon (capacity 2,500 tonne crushed per day) and the second in Sakharwadi (1,250 TCD).