Uttar Pradesh (UP) based sugar companies are in focus as the UP government has been sent a letter from the Central Ministry on scrapping the State Advised Price (SAP) on sugarcane. In an interview to CNBC-TV18, Tarun Sawhney, Vice Chairman & Managing Director of Triveni Engineering & Industries spoke about the same.
In an interview to CNBC-TV18, Tarun Sawhney, VC & MD of Triveni Engineering & Industries spoke about the results and his outlook for the company.
In an interview to CNBC-TV18's Reema Tendulkar & Prashant Nair, Tarun Sawhney, VC & MD of Triveni Engineering & Industries said that hike in fair and remunerative price (FRP) by Rs 30-40 per quintal could be dangerous.
The Uttar Pradesh (UP) government has kept the cane price unchanged at Rs 280 per quintal, which could be net positive for some sugar companies. This price has been constant for the third year now.
Speaking to CNBC-TV18, Tarun Sawhney, Vice-Chairman & MD, Triveni Engineering says gap between cost of production and sale price will be filled by the government‘s subsidies.
In an interview with CNBC-TV18, Sawhney said that despite the financial assistance, there will be arrears, which need to be addressed by the Central government.
ISMA director general Abhinash Verma believes the sugar industry will see better realizations with the new price. The industry revenue will increase by nearly Rs 5,000 crore, he adds.
For the company per se, the write-downs in inventory have been substantial for the first quarter of FY15, said Tarun Sawhaney vice chairman & managing director, Triveni Engineering and Industries.
Commenting on the dismal performance of their sugar business in July-September quarter, Tarun Sawhney of Triveni Engineering says, they have been suffering losses for the last 12 months and going forward the future of the business totally depends on sugarcane prices in Uttar Pradesh (UP).
The UP sugar industry is in a devastating situation at this point in time with the losses for the last fiscal year crossing Rs 3,000 crore, the highest in history. However, the industry hopes government to take some measures soon on the cane pricing policy going ahead, says Tarun Sawhney.
Triveni Engineering & Industries hopes to gain Rs70-80 crore on account of removal of 10 percent sugar levy quota
After fairing well in the first quarter of their financial year, Tarun Sawhney, joint managing director, Triveni Engineering is optimistic on the company's performance in the next quarter.
Dhruv M Sawhaney, chairman and managing director, Triveni Engineering says Rangarajan report is absolutely incredible. "This report will cater to all three sections—farmers, industry and consumers. All the recommendations are very forthright in bringing this sector into the main stream," he adds.
Triveni Engineering has fixed May 4 as Record Date for Scheme of Arrangement with Triveni Turbine. Dhruv M Sawhney, Chairman and Managing Director, Triveni Engineering and Industries Limited, spoke about that process and how investors should approach it now.