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July 01, 2005
Empee Sugar & Chemicals Limited To Double Its Turnover In 2005-06
Empee Sugars & Chemicals Ltd. (ESCL), part of the Empee group, has reported a turnover of Rs. 62.08 crore and an operating profit (OPBID) of Rs. 11.36 crore, for the year ended March 2005, as against a turnover of Rs 55.90 crore and operating profit (OPBID) of Rs 4.69 for the financial year 2003-04
Chennai (PRWEB) July 1, 2005 -- Empee Sugars & Chemicals Ltd. (ESCL), part of the Empee group, has reported a turnover of Rs. 62.08 crore and an operating profit (OPBID) of Rs. 11.36 crore, for the year ended March 2005, as against a turnover of Rs 55.90 crore and operating profit (OPBID) of Rs 4.69 for the financial year 2003-04. The company will not have any Term loans dues during the current financial year. Hence the existing asset base will be adequate to leverage its expansion plans. The company had started importing raw sugar under the advance licensing scheme and close to 25,000 tonnes of raw sugar has been imported and converted into white sugar. The total allotment of import of raw sugar allotted to ESCL is 70,000 tonnes.
In the current fiscal, ESCL plans to increase its sugar production to 3.80 lakh tonnes as compared to 2.38 lakh tonnes produced in 2004 - 05. The company has a total command area of 50,000 acres, out of which 10,000 acres are under cultivation, with assured irrigation facility. Further, ESCL would import 40,000 tonnes of raw sugar, as per the balance quota allotted to the company under advance licensing scheme. The Industrial Alcohol Production of the company will also be increased from 30 KL per day to 60 KL per day, by the end of the current fiscal. Based on this and the demand in the market for processed sugar and Industrial Alcoholic Products (IAP), the company has projected doubling up its turnover for the year ending March 2006.
Commenting on the future for ESCL and the Sugar Industry, Mr. R. Chandra Mohan, Sr. Vice President, Empee Sugars & Chemicals Ltd., said, “Shortage in sugar supply for two consecutive years has been an inventory feeding phenomenon, which is likely to continue in the ensuing crushing season. This will eventually lead to a dip in inventory position to 20% of conception in 2005-06, compared as high of 69% in 2002-03. The ensuing season will see a deficit of about 2 million tonnes of sugar in demand and supply. With the gap in demand and supply and depletion of stock level, domestic sugar price is bound to firm up. Global deficit of sugar for two consecutive years, coupled with Brazil using 50% of sugarcane for direct production of ethanol will further deplete the sugar stock globally”. He further added, “Empee Sugar has consistently put its effort to improve capacity utilisation by import of raw sugar and expansion of sugar cultivation areas. With the demand for Sugar and Industrial Alcohol Products on the raise, we look forward to a great year ahead”.
ESCL also plans to set up a 20 MW cogeneration plant, with an investment outlay of Rs. 80 crore, at its sugar unit at Nayudupet, Andhra Pradesh, which would be operational in the financial year 2005 - 06. 10% of the power produced would be used for internal consumption and the balance would be fed into the grid through sale to the Electricity Boards under the PPA.
Speaking on the financial performance of the company and the future, Mr. P.K. Das, Vice President - Finance & Company Secretary, said, “The year that passed was very positive for Empee Sugars and Chemicals; we were able to arrive at settlements with financial institutions. The company has turned around and will not have any term loan dues in the current financial year and hence the existing asset base will be leveraged for future expansion plans. The company’s all-round efforts to improve turnover and profitability, by improving capacity utilisation, improvement in efficiency parameters and cost optimisation, have borne fruit. The company has advanced licence to import 70,000 MT of raw sugar and will import and process 40000 MT of raw sugar and plans to expand the cane cultivation area to 25000 acres by the end of the ensuing year. This will significantly add up to the turnover and profit. ESCL envisages to double its turnover and expects a net profit of Rs 15 crore in the ensuing crushing season.”
The total cane crushed in 2004-05 was 2.5 lakh Tonnes. The company expects to crush 4 lakh tonnes by the end of sugar season of 2005-06. The Nayudupet unit has delivered higher crushing, recovery and sugar production, the average recovery having improved substantially in the last financial year
In addition, the biotechnology division of the company also produces bio-fertilizer that is sold to the farmers at subsidised rates, to encourage sugarcane farming.
Note to the editors:
Empee Sugars & Chemical Ltd. (ESCL), part of the Empee Group of Companies, was incorporated in 1991. The present share capital of the company is Rs.4197.29 lakh divided into 419.73 lakh equity shares of Rs.10/- each. The Company has state of art sugar manufacturing plant in Nayudupet, Andhra Pradesh. The unit has a capacity of crushing 2800 tonnes per day. The company has a command area of 50,000 acres under assured irrigation facility. The company also has an industrial alcohol unit with a capacity of 30 KL spirit per day. Biotechnology division of the company produces bio-fertilizer and is sold to the farming community at subsidised rate to encourage farming of sugarcane.
Posted by Industrial-Manufacturing at July 1, 2005 02:20 AM