Rs 110 crore greenfield capacity expansion plan

Mumbai, February 17, 2005:- Dwarikesh Sugar Industries, an integrated sugar manufacturer, today announced its Rs 110 crore expansion plan to set up a 5,500 tons crushed per day greenfield project at Bahadarpur in Bijnor district, Uttar Pradesh. The project is expected to be commissioned by November 2005.

Mr. G R Morarka, Chairman and Managing Director, Dwarikesh Sugar Industries said "The greenfield project is in line with our company's growth strategy to become a large integrated sugar conglomerate with interests in synergistic businesses."

The commissioning of the new capacity in November, 2005 will entail full benefits of sugarcane cycle for FY06. The capital outlay for current expansion is Rs 110 crore for which funding arrangements are at the final stage.

Commenting on the occasion, Mr. J R Banka, Chief General Manager-Corporate Affairs said "We have adopted twin strategy, on one hand as we are expanding our capacity; our other objective is to control costs. For our earlier loans, we are restructuring our high cost debt through repayment and structuring of the same. This will save on our interest burden and reflect on our bottom-line."

Dwarikesh Sugar Industries made a successful IPO in November 2004 raising Rs 32.50 crore. The company has issued 50 lac shares at a premium of Rs 55 per share (face value Rs 10) was oversubscribed 23 times. The company currently has a sugar crushing capacity of 6500 tons crushed per day, 17 MW Co-generation power unit and 30,000 litres per day distillation capacity at Dwarikeshnagar,Bijnor. The company supplies around 8MW to UP power corporation Ltd.