Olam to expand crushing capacity at sugar refineries in India

Will expand crushing capacity by 2,000 tonne in two years

Singapore-based Olam International today said it is looking to expand the sugar crushing capacity a day (TCD) at its refineries in India by 2,000 tonne to 9,000 in the next two years.

Olam has two sugar refineries in the country with a total capacity of 7,000 TCD.

"India is an attractive market for us. We continue to expand. We plan to increase our total capacity in Maharashtra and Madhya Pradesh to 9,000 TCD in next two years," Olam Senior Vice President and Head of Strategic Investment Shankar Ahtreya told reporters at an event here.

While the capacity in Maharashtra will be increased to 5,000 TCD, from 4,000 TCD, the capacity in Madhya Pradesh will be increased to 4,000 TCD from 3,000 TCD, he said.

Asked about Olam's expansion plans in other countries, Athreya said, "We have refineries in Indonesia and Brazil. We are looking to set up mills in Africa."

He also said India's sugar demand is likely to increase to 32-35 million tonne by 2020 with rise in income and consumption.

He also noted that the country could become an importer as supply-demand gap is expected to widen.

Olam International is a global integrated supply chain manager of farm products and operates in 65 countries.