Dalmia Cement eyes acquisition of sugar mill

Diversified group Dalmia Cement (Bharat) is looking to acquire a sugar mill in the domestic market to cash in on the burgeoning demand for the sweetener.

"The company is looking at opportunities for acquisition, but the plan is at the drawing-board level," a source close to the development told PTI.

India's total sugar demand is pegged at 23 million tonnes this year as against the estimated output of 16 million tonnes for 2009-10 season (October-September). The gap is currently being met through imports.

Dalmia Cement (Bharat) has three sugar mills - all in Uttar Pradesh - with a total of 22,500 tonnes per day cane crushing capacity and about 3 lakh tonnes sugar manufacturing capacity in a year.

"The acquisition will help the firm to broaden its horizon and enhance capacity to cash in on the buoyancy of the industry," the source said, adding that Dalmia Cement (Bharat) has enough internal accruals to fund the acquisition.

Ranked among the top-10 players in the country's sugar industry, Dalmia Cement (Bharat) is a leading cement player in Karnataka and Tamil Nadu as well.

Apart from cement and sugar, the company has interests in the power sector too. Sugar is second only to cement in terms of revenue for Dalmia.