Sakthi Sugars Ltd

Sakthi Sugars Ltd

Sakthi Sugars Limited (SSL) was established in May 12 1961. The Company is engaged in the business of manufacture of sugar industrial alcohol power and soya products. The installed capacity of sugar division is 19000 tons of cane crush per day (TCD). Its power division has co-generation power plants at Sakthinagar Sivaganga and Modakurichi and the aggregate power generation capacity of all three plants is 92 MW. Its distillery produces rectified spirit extra neutral alcohol and ethanol and has a distillation capacity of 150 kiloliters per day (KLPD) and ethanol plant capacity of over 50 KLPD. The Company has the capacity to process 90000 tons soya beans per annum. SSL took over a 1250-tcd sugar unit on a 10-year management contract basis from the Badamba Co-operative Sugar Industries in 1991 with an option to extend the contract for a further period of 10 years. It has also established a modern sugar unit with a crushing capacity of 2500 tcd which commenced operations during 1994-95. Apart from the four sugar units Sakthi Sugars has two distilleries and a foundry. The capacity of the foundry was expanded to 24000 tpa. The company entered into technical collaboration with George Fischer Foundry Switzerland to supply state-of-the-art manufacturing technology. Sakthi Soyas a group company was merged into SSL with effect from 1st Apr.'93. The unit has an installed capacity of 100000 tpa to produce refined oil de-oiled cake full-fat soya meal soya flour flakes and texturised vegetable protein. SSL has installed a new unit at Haripur for industrial alcohol with an installed capacity of 10000 KL pa. During 1997 the new disamatic foundry wing commenced its production with SG Iron Casting and Graded Iron Casting with a annual capacity of 2600 MT and 1000 MT p.a. The capacities of both the products was increased 14400 MT and 9600 MT p.a respectively. As a restructuring measure the company has hived off its foundry division to wholly owned subsidiary viz Sakhti Auto Components Ltd from April2000.The crushing capacity of Sakthi Nagar Unit was increased 6000 TPD in October 1998.The company has taken up implementation of co-generation project at Sakthinagar Sugar Unit. The installed capacity of the proposed co-generation plant is 35 MW. The Co-generation project could not be started off as per schedule and the same is expected to be commissioned in October2003. An incidental 2 MW co-generation at Sivaganga Sugar unit has commenced its operations from April2002. The process for setting up a beverage project with Hindustan Coca-Cola Beverages is complete and the plant is ready for operation. Necessary permission from the State Government is expected to commence commercial production. It has entered into JV with TNPL under which the bagasse produced by the company will be exchanged for steam required for operation of the mill and the boilers at Sakthinagar.The Sakthinagar Distillery Division has intalled Ethanol plant with an annual capacity of 50000 ltrs per day and trial production commenced on June2003 and supply of ethanol to oil companies is expected to commence shortly.The 32MW Co-Generation plant at Sakthi Nagar Sugar Unit was commissioned on 11 November 2003. The Ethanol plant with a capacity to produce anhydrous alcohol of 12500 KL per annum at Sakthinagar Distillery unit started its commercial production effective from 17 April 2004 for supply to oil companies. The Company had issued and allotted 3641000 equity shares of Rs.10 each to Foreign Institutional Investors on preferential basis which aggregated to Rs. 18.21 crores.The installed capacity of Sakthinagar Sugar Unit which enhanced to 9000 TCD and the new sugar mill with 3500 TCD at Poonthurai Semur Modakurichi Erode District commenced its operation on 7th September 2007. The Company's second Co-generation plant with 25 MW in the new sugar mill premises at Poonthurai Semur Erode District commenced operations from 7th September 2007. The Company acquired the entire equity share capital of Tilan Sugar Limited and accordingly Tilan Sugar Ltd became the wholly owned subsidiary of the Company in 2007. Sakthi Auto Component Limited (SACL) the wholly owned subsidiary of the Company acquired the entire share capital of Orlandofin B.V. Netherlands.The Company implemented the 35 MW cogeneration plant at Sivaganga Sugar mill premises and it commenced its operation from onward February 1st 2008. Sakthi Auto Component Limited the wholly owned subsidiary of the Company through its European subsidiary Orlandofin BV acquired Arvika Gjuteri AB in Sweden having a foundry unit with a production capacity of 30000 MT per annum in February 2008.In March 2013 the investment in Sakthi Portugal SA was revalued at Euro 136.55 million and the shares held by Sakthi Netherlands BV in Sakthi Services GmbH were transferred to Orlandofin BV in April 2013. Sakthi Auto Component Limited allotted equity shares aggregating to Rs. 54.39 crores at par by converting 5438616 Participatory Convertible Preference Shares of Rs. 100 each to the holders of the said Preference Shares including equity shares of nominal value of Rs. 20 crores to the Company and accordingly shareholding percentage of the Company in Sakthi Auto Component Limited reduced to 65%. During the financial year 2013-14 the Company issued and allotted 59405940 equity shares at a price of Rs.30.30 per share on preferential basis to AB T Limited a company belonging to the Promoter Group against the sum of Rs.180 crores brought inby that company and consequently after this allotment the Company became subsidiary of AB T Limited. With effect from 24th May 2016 ABT Investments (India) Private Limited became the Holding Company in view of vesting the entire equity shareholding of ABT Limited in the Company with ABT Investments (India) Private Limited pursuant to the Scheme of Demerger of ABT Limited approved by the Honourable High Court of Judicature at Madras.On 17th October 2018 the Company's shareholding in the share capital of Sakthi Auto Component Limited (SACL) came down to 19.81% from 22.67% and as such SACL ceased to be an Associate Company with effect from the aforesaid date.In 2022 the Board of Directors approved sale of Dhenkanal Sugar and Distillery Units in Orissa State and the Soya Unit at Marchinaickenpalayam Pollachi at Coimbatore.