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DCM Shriram to raise $35 mn from IFC to support $86 mn capex plan

The company proposes to expand sugar capacity and ramp up co-generation plant and distillery unit in UP

T E Narasimhan  |  Chennai 

DCM Shriram factory | Photo: Company website
DCM Shriram factory | Photo: Company website

Limited plans to raise $35 million from IFC to support its $86.1 million capital expenditure plan to expand sugar production, and in Uttar Pradesh.

IFC's proposed investment consists of an A-loan of $35 million by way of an external commercial borrowing (ECB), said IFC.

DCM's main business lines include (fertilisers, seeds, sugar and trading of farm inputs) and Chloro-Vinyl (caustic soda, chlorine & polyvinyl chloride, or PVC).

The company's brownfield expansion at its existing sugar plant at Hariawan in Uttar Pradesh involves crushing an incremental 5,000 tonnes of cane per day. Installation of a 30 Mw using bagasse as fuel in Hariawan and an expansion of its distillery capacity in Ajbapur.

Limited is a listed company on the Exchanges with revenues of around $ 1.06 billion and bet profit of around $104 million for the financial year ended March 31, 2018.

The Company had a market capitalisation of approximately $ 866 million as of February 22, 2019. Promoters hold approximately 66 per cent of the shares in and the rest is held by institutional and public shareholders.

First Published: Sat, March 23 2019. 09:39 IST
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