Simbhaoli plans Ghaziabad plant

Simbhaoli Sugar Mills, the largest integrated sugar refinery in India, is setting up a new 4,000 TCD greenfield sugar plant along with power cogeneration plant in Brijnathpur village of Ghaziabad (western Uttar Pradesh). Amar Singh, chairman of UP Development Council will be laying the foundation stone of the plant on Tuesday.

Intensive cane development is underway in the area. Farmers' service centers are being set up to facilitate the farm-to-factory linkages. The new project is being financed by a combination of loans and internal accruals. The project is being appraised by SBI Capital Markets and it is likely to go on stream in October 2006.

The company has already acquired land for the proposed plant at a location near Simbhaoli sugar division. The orders for purchase of major plant and machineries have been placed.

The current phase of expansion would include setting up of 60 kl of ethanol distillery at Chilwara Sugar plant. In order to convert the Chilwara sugar division into a complex, the capacity of sugar plant is being expanded from existing 3,800 TCD to 6,000 TCD.

State Bank of India (for sugar plant) and ICICI Bank (for ethanol distillery), will be providing finances for these projects.

According to GSC Rao, executive director of the company, "The new plant will provide synergy with the existing sugar unit at Simbhaoli and help the company achieve economies of scale. The new sugar mill will be a linkage for 'Raw-refining process technology' of the company. It will focus on lowest process steam consumption, thereby saving enough baggasse for its own as well as Simbhaoli Refinery's cogeneration needs. Meanwhile, molasses produced will be used for ethanol production at Simbhaoli distillery unit. It is part of company's ongoing Rs 355 crore business plan envisaging setting up integrated sugar, baggasse- based cogeneration and ethanol facilities in UP."