Simbhaoli Sugars Ltd (SSL) on Wednesday said it has started construction of the Rs 235 crore refinery at Kandla in Gujarat. The sugar refinery is being built by Uniworld Sugars Pvt Ltd (USL), a joint venture company of SSL and ED&F Man Holdings, a global sugar trading house. The plant will have a cane crushing capacity of 1,000 tonnes crushed per day (TCD).
"SSL, in a joint venture arrangement with ED&F Man Holdings, announced the ground breaking and commencement of the project construction activities at site, to set up a greenfield 1,000 TCD sugar refinery at Kandla, Gujarat," the company said in a statement.
The new raw processing facility is being set up in proximity to Kandla port for eliminating the transportation charges on importing raw, and exporting white sugar, it added.
"The estimated cost of the project, Rs 235 crore is being financed by way of long term loans and promoters' equity. The debt finance for the project has been secured from banks," the company said. SSL and E D & F Man Holdings along with their affiliates are contributing into the share capital of USL in equal ratio, and first installment of capitalisation of Rs 68.95 crore has already taken place, it added.
While, SSL will provide the expert services of management and day-to-day operations, ED&F Man will provide advisory services on all aspects of the global market for raw and white sugar and issues related to the hedging of USL's market risks.
"The refinery is intended to be commissioned within 15 months, that is, along-side the expected change in current sugar cycle, to reap the maximum benefits from the changing sugar cycles," SSL Chairman Gurmit Singh Mann said.
ED&F Man Holdings Operations Director Philip de Pass said that the facility can be an ideal processing and export destination due to proximity to deficit markets around India, keeping in view the consistent increase in rate of sugar consumption in India and neighbouring countries.
At full capacity, the refinery will be producing 300,000 tonnes of high quality white sugar, the company statement said.
