You are here: Home » Companies » News
Business Standard

Empee Group to set up Rs 6,500-cr power project in TN

Gireesh Babu  |  Chennai 

Chennai-based Empee Group of is planning to set up a mega thermal power project of up to 1,320 Mw in Tamil Nadu with an investment of around Rs 6,500 crore.

The group has interests in Indian made foreign liquor (IMFL), sugar, power and hospitality businesses. Its power division currently has two co-generation plants and a biomass plant with a total capacity of 80 Mw. With the increased tariff for electricity, the company sees a growth opportunity in the power sector.

“We are in the initial stage of planning the project. Plans are on the cards to commence work on the plant in the next six months and complete the project in the next three years,” said Nisha Purushothaman, vice-chairperson of the Empee Group.

“Earlier, the tariffs were low while the coal was expensive. Now, the rates have started picking up with revised tariffs. Hence, we see an opportunity in this segment,” she said, adding that basic formalities for the project had been completed, including obtaining the basic permissions to start the project.

The group will be looking at various fund-raising options. Investment bank and project advisor SBI Capital Market Limited is advising the company on the fund-raising, including equity investment and joint ventures.

Empee Group, which is currently importing coal from Indonesia for its power plants, will also look at arranging its own coal base.

Empee Group, which currently has a turnover of around Rs 1,500 crore, is expecting to double the turnover in the next three years by consolidating various businesses, which are currently under expansion and restructuring.

The company, which has recently re-entered the beer market, will start operations in its brewery unit in Chennai within the end of this month. It is in the process of coming up with its own beer brands.

The group had spent around Rs 400 crore in the last two years in expansion, including setting up Hilton Hotel in Chennai in collaboration with global hospitality player Hilton.

The company is also in the process of restructuring its business. As part of bringing in its listed under a single entity, it is planning to merge Empee Distilleries Limited (EDL) and Empee Sugars and Chemicals Limited (ESCL). The merger will vest all assets, liabilities and business of EDL with ESCL. The sugar assets will be pushed down as a 100 per cent subsidiary of the merged entity.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, May 24 2012. 00:26 IST