I am pleased to present the financial results for the year 2006-07 of
the Company. The upswing in the sugar cycle lasted for a very short
time. The very high production of sugar in India and Brazil and also
the untimely ban on export of sugar in India created the current crisis
in the Industry.
The above factors had an adverse effect on the results of the company.
Although the level of crushing has gone up to 34.77 lakh tonnes
(previous year 27.47 lakh tonnes), the year has ended with a lesser
turnover at Rs.766.52 crores compared to Rs.896.02 crores and net
profit at Rs.30.18 crores (previous year Rs.96.16 crores). The
operations of distillery and co-generation plants were optimal and have
contributed to balance out the negative results of the sugar division.
I am glad to mention that the dividend is being maintained at 15% to
The new sugar unit with 3500 TCD capacity and 25 MW co-generation plant
at Modakurichi were commissioned in September 2007. Implementation of
the other two co-generation projects at Sivaganga and Sakthinagar are
in progress and are expected to go on stream in December 2007 and March
2008 respectively. The company has also expanded the distillation
capacity to 120 KLPD from 90 KLPD at Sakthinagar. Availability of sugar
cane continues to be sufficient to maintain optimum utilization of the
capacity. With all the new capacities in operation, I am confident that
the performance of the Company will be better in the years to come.
I express my sincere gratitude to the stake holders for their continued
support. I thank my colleagues on the Board, cane growers, suppliers,
bankers, financial institutions, Central and State Governments and all
others for their continued support.