| Sakthi Sugar plans to raise $ 50 million (about Rs 230 crore) to fund its expansion plans. Of the total capital that the company would raise, Rs 150 crore would be spent to set up two co-generation plants and the remaining amount would be spent to set up a new sugar mill.
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| The company plans to raise the capital through foreign currency convertible bonds (FCCBs) or partly convertible debentures (PCDs) or optionally convertible debentures (OCDs) or fully convertible debentures (FCDs), debentures attached with warrants whether secured or unsecured or global depository receipts (GDRs), American depository receipts (ADRs) or equity shares. The capital is expected to have a 20 per cent green shoe option for international investors.
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| The company informed that the board of directors, held on February 2, 2006, has considered its expansion plans subject to approvals. A final decision would be taken after the general body meeting of the company to be held on February 28, 2006.
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| The company is planning to set up two co-generation plants; one with a capacity of 35 mw at its sugar unit at Padamathur in Sivaganga and another unit with a capacity of 25 mw at Sakthinagar in Erode.
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| M Manickam, managing director, Sakthi Sugars, told Business Standard that the company is setting up the plants in order to utilise an additional cane capacity. He said that a new sugar mill with a capacity to crush 3000 TCD would be set up at a location yet to be decided.
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| However, he added that the new sugar mill would come up in Tamil Nadu and a final decision on the location would be taken in two months.
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| At present, Sakthi Sugars has three plants, one each at Sakthinagar, Sivaganga and Dhenkanal in Orissa.
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| The crushing capacity of Sakthinagar plant has been increased from 6,000 tonnes per day to 7,500 tonnes a day and the capacity of Dhenkanal plant has been raised from 1,500 tonnes per day to 2,500 tonnes per day. |
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