Dwarikesh Sugar on Growth Path

Mumbai, February 28, 2005 : The Board of directors of the Company at their meeting held on 28th February, 2005 at Bombay approved the convening of an Extra Ordinary General Meeting to obtain sanction for issue of FCCB's, amounting to 25 million dollars. The Board further approved increase in investment limit to 49% in the equity shares of the company by FII, NRI, OCBs.

The progress of the new project is also satisfactory. Orders for all plant and machinery have been placed, civil work has commenced in full swing and cane development activities initiated. It is expected that the plant would be commissioned in November'05 as estimated so as to catch the next crushing season of 2005-06. The existing plant at Dwarikesh Nagar is operating at full capacity and it is achieving one of the highest ondate recoveries in the state of Uttar Pradesh. The increased capacity of co-generation of 17 MW (9MW for captive consumption and up to 8Mw for sales to UPPCL) and 30 KLPD Distillery plant have also commenced production and are running to their capacity. The sugar, molasses and bagasse prices continue to show a firm trend.