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| Ponni Sugars plans to invest Rs 72 cr to set up distillery |
| T E Narasimhan / Chennai Jun 12, 2009, 00:43 IST |
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Chennai-based Ponni Sugars (Erode) Ltd is planning to set up a distillery near Erode. The company is planning to invest Rs 72 crore for setting up the facility close to its sugar mill at Erode.
N Ramanathan, managing director, Ponni Sugars (Erode) Ltd said the company is planning to set up a distillery unit with a capacity of 60 KLPD closer to its sugar mill in Erode. The new unit is coming at 30 kms from Erode Sugar Mill. The proposed investment will be around Rs 72 crore, which will funded through internal accrual and debt. The company ruled out equity option, said Ramanathan.
He added, the company had acquired 25 acre of land for the project and has submitted application to the state government for issue of Distillery Licence. “We hope to receive the licence in the net six months”.
Meanwhile company has reported Rs 12.26 crore profit after tax in 2008-09 against a loss of Rs 1 crore in 2007-08.
“The recovery in sugar and molasses prices coupled with higher sugar recovery has helped the company post creditable results”.
The company had to operate for a shorter duration due to reduce cane availability in line with the industry trend. Cane quality was however better, yielding a higher sugar recovery. Sales volume was lower by 33 per cent due to conscious withdrawl from exports beginning second quarter in the backdrop of improved domestic price outlook.
Company’s board has recommended a dividend of Rs 2.50 per share as against Rs 0.60 for the previous year.
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