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Home » News » Business

Nov 07, 2005, 04.29 PM | Source: Moneycontrol.com

Bajaj Hindusthan acquires Pratappur Sugar & Industries

Bajaj Hindusthan acquires Pratappur Sugar & Industries

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Bajaj Hindusthan acquires Pratappur Sugar & Industries

Bajaj Hindusthan acquires Pratappur Sugar & Industries

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The Board of Directors, Bajaj Hindusthan Limited (BHL) in a meeting today (30.8.05), approved the acquisition of 19,80,000 Equity Shares of the face value of Rs. 10 each representing 55 per cent of the paid up equity share capital of The Pratappur Sugar and Industries Limited (PSIL), a listed Company, from its existing promoters at a price of Rs. 55 per share.

The Board further approved making an open offer to all the remaining equity share holders of PSIL to acquire 7,20,000 Equity Shares representing 20 per cent of its paid up share capital at a price of Rs. 56.80 per fully paid up equity share.

PSIL is a running sugar Plant since 1903 at Pratapper in Distt Deoria, East Uttar Pradesh. With a crushing capacity of 3,200 tcd, it crushed 2.68 lac tonnes of cane, producing 2.69 lac bags of sugar in the last sugar season of 2004-05. There is a large culturable area around this Unit with high potential of increasing cane cultivation and scaling up capacities significantly. With most sugar Plants in the vicinity closed, expansion of capacities at PSIL will benefit the local farmer community and improve the rural economy of the region.

BHL has a current cane crushing capacity of 31,000 tonnes per day (tcd) at three sugar producing Units in the Lakhimpur and Kinauni districts of Uttar Pradesh, which will increase to 53,000 tcd in October this year when three of its new greenfield projects in Muzaffarnagar and Bijnore districts commence operations. This will increase the Company's sugar production capacities by 0.43 million tonnes to close to 1 million tonnes. Further expansions announced earlier this year are planned for 2006-07 crushing season through three additional greenfield projects in Saharanpur, Pilibhit and Lakhimpur regions of U.P., intended to increase total cane crushing capacities to 95,000 tcd, producing around 2 million tonnes of sugar per annum. Production capacities of alcohol will also rise from the current 160 kilolitres per day KLPD to 320 KLPD during the same period.

Commenting on the occasion, Mr. Kushagra Nayan Bajaj - Chief Executive, BHL said, "Reflective of our ambitious expansion plans starting from greenfield projects like Kinauni last November and the six new projects we are currently working on, this is the first acquisition by the Company and establishes our presence across UP. The PSIL acquisition gives us a strategic foothold in the sugar-deficient region of Eastern UP and reaffirms the consolidation taking place in the sugar industry today."

Sourced From : Bajaj Hindusthan Limited

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