Dharani Sugars to complete Rs 335cr mill complex

Dharani Sugars and Chemicals Ltd is set to complete its Rs 335-crore integrated sugar mill complex with the launch of a 100 kilolitre a day (klpd) distillery.

Dr Palani G. Periasamy, Executive Chairman, Dharani Sugars, said the company plans to commission the distillery in six months, following the statutory clearances obtained recently. The company will invest Rs 75 crore in the distillery, which can produce rectified spirit, extra neutral alcohol and ethanol.

Dharani Sugars recently commissioned a Rs 153 crore, 3,500-tonne-a-day sugar mill that is expandable to 5,000 tonnes in Villupuram district. The complex has a 22-MW cogeneration facility, built with an investment of Rs 110 crore, which will supply surplus power to the grid. Dharani Sugars has funded the complex through Rs 90 crore of equity and internal accruals with the balance as debt.

The new facility adds to its two mills — a 2,500-tonne sugar mill and 60 klpd distillery in Tiruneliveli District, and a 4,000 tcd sugar mill and 18 MW cogeneration unit in Tiruvannamalai.

Q2 results

Dharani Sugars has reported a ten-fold jump in net profit for the second quarter of the current year as compared with the corresponding period last year. For the quarter ending September 30, 2009, the company reported a net profit of Rs 33 crore (Rs 3 crore) on net sales of Rs 131 crore (Rs 37 crore).

On the NSE on Thursday, Dharani Sugars closed at Rs 88.90, down 1.88% from the previous close of Rs 90.60.
Taken from Business Line