Ground breaking ceremony for 7500 TCD Greenfield project at Bareilly

Mumbai: Dwarikesh Sugar Industries, an integrated sugar manufacturer informed the Bombay Stock Exchange & National Stock exchange on 8th May 2006 about the ground breaking ceremony for its new Greenfield project 'Dwarikesh Dham' located in Bareilly, Uttar Pradesh, which will be operational by the sugar season 2007-08. The plant will have a cane crushing capacity of 7500 TCD and a co-generation capacity of 36MW. The Company performed a Bhumi Pujan on May 10, 2006.

With the commencement of the Greenfield project, the company's capacity will move up to 21,500 TCD from 14,000 TCD . The total expenditure incurred for the Greenfield project is 200 crore. The company has further started work on its expansion of power cogeneration capacity in its new plant at Dwarikesh Puram from existing 9 MW to 33 MW. This will take total power generation capacity of company to 86 MW of which 30 MW will be for captive consumption and 56 MW will be sold to state grid. The cost of this expansion is 95 Crores. Total capex will be funded through a mix of internal accruals, FCCB and balance by a debt from banks. The order for major plants and equipments are already placed. Company has already signed PPA for its proposed power with UPPCL. The financial closure is attained.

Mr. G R Morarka, Chairman and Managing Director, Dwarikesh Sugar Industries said "We are happy to announce our third plant which will enhance our capacity to 21,500 TCD, 86 MW power and 30000 Ltrs per day distillery. This expansion will take us into a higher league. We stand by our long term strategy to capitalize on the uptrend in sugar prices and enhance capacities to drive growth."

About Dwarikesh Sugar Industries Ltd

Dwarikesh Sugar Industries Ltd made a successful IPO in November, 2004 raising Rs. 32.50 crores. The company's IPO of 50 Lacs shares at a premium of Rs 55 per share (Face value Rs. 10) was oversubscribed 23 times. Prior to the commencement of the Greenfield project of 7500 TCD and 9 MW co-generation power, the company had a crushing capacity of 6,500 TCD, 17 MW Co-generation power unit (expanded from 9 MW) and a distillery with capacity of 30,000 Liters per day. The Company exports around 8 MW to UPPCL under a long term Power Purchase Agreement. With recent issue of 3,000,000 GDR at USD 4 Each, company is now ready to expand its sugar production capacities further.