Sentini sets up bioproducts unit in West Godavari

Sentini Group has set up Sentini Bioproducts Private Limited in tie-up with a US multinational for producing ethanol from maize.

Set up in a 50 acre site at Pulla village in W Godavari, it boasts of being the first grain based unit in Andhra Pradesh. Besides ethanol, the company would manufacture rectified spirit, industrial alcohol, and potable alcohol.

T Seshagiri Rao, chairman of the Rs 500 crore Sentini group and managing director of the bioproducts company, told Business Standard that in the first phase Rs 115 crore would be pumped in including Rs 45 crore company equity and Rs 70 crore bank loan. In the second phase, another Rs 90 crore would be invested to double up the production.

"We would use maize and produce 1.2 lakh litre of 99 per cent proof alcohol per day. The production, together with other products, would be around 45,000 kilolitre worth Rs 150 crore per annum. Work on the construction of factory is already half way through and the production would begin by next June," Rao said.

The unit would require one lakh tonnes of maize every year and 20,000 farmers to grow the crop. The company plans to collect maize through contract farming. It would supply seeds, fertilisers, pesticides, other farm exigencies to farmers. Besides, its experts would counsel farmers from sowing stage.

"The farmers would be paid minimum assured price, which is over and above government's MSP. The plant would provide direct and indirect employment to about 1,000 locals," Rao said.

Sharing figures of the group's tiles manufacturing division Sentini Cermica Private Limited, Rao said, "The firm accomplished a business of Rs 50 crore during the first quarter of 2005-06. Its turnover last year was Rs 145 crore and it is targeting a turnover of Rs 250-275 crore during 2005-06." Cermica supplies tiles to its partner firm H&R Johnson (India).

He said, "The construction of the country's biggest (500x29mts) and second biggest (350x29 mts) kilns in ceramic industry has been completed at Sentini tiles factory at Chigurukota, 60 km from Vijayawada, at a capital of Rs 175 crore. Doubling the tiles production (26,000 sq mts per day) would commence from October 1 this year. The third phase of expansion of tiles production from 26,000 sqmts to 50,000 sq mts per day is likely to be delayed due to non-availability of gas from the K-G basin. The transport division of the plant has been expanded to 85 trucks from last year's 25 trucks at a cost of Rs 20 crore."