Dollex banks on carbon credit

Mumbai-based Dollex Industries, an integrated sugar, power and biofuels manufacturer, is negotiating with UK-based Novera Energy for sale of 600,000 units of carbon credit over the next three-year period.

The carbon credit sale is likely to bring in Rs 100 crore for the company. MG Biogreen will be the facilitator as well as the carbon credit asset manager for the transaction.

To cash in on the emerging carbon credits market, the company is also planning to set up an additional three plants over the next couple of years. The carbon credits market is already worth $30 billion and growing.

Despite sugar companies passing through one of the worst phases in recent times, Dollex has drawn a definitive investment plan with a diversified business portfolio. The company recently bought a sick crushing unit from the Maharashtra government to increase production.

The company is planning to increase its crushing capacity to 15,000 tonnes per day (TCD) from the current 6500 tonnes through the expansion of its existing facilities and the acquisition of sick units in Maharashtra and Karnataka.

It is also increasing its ethanol production capacity from 60 KLPD to 250 KLPD by 2008. The company has, meanwhile, signed an MOU with the Andhra Pradesh government, valued at over Rs 200-250 crore, for a integrated sugar and power cogeneration complex.

The unit will produce 4,500 TCD of sugar and 100 KLPD of ethanol.

As per the terms, the company will have an exclusive power purchase agreement (PPA) with the state government over a period of 10 years. The government will also provide incentives to the company.

"The overall expansions and new initiatives are likely to bring in Rs 150 crore in the current financial year compared with Rs 25 crore last year," said Anis Khan, MD.

The company recently bagged a $6 million order for producing Indian Made Foreign Liquor (IMFL) from Africa. Under the contract, the company will supply 360 containers of IMFL to the African buyer.