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Simbhaoli Sugars gains on starting construction of sugar refinery in Gujarat

18 Apr 2012 Evaluate

Simbhaoli Sugars is currently trading at Rs. 30.00, up by 0.05 points or 0.17% from its previous closing of Rs. 29.95 on the BSE.

The scrip opened at Rs. 29.20 and has touched a high and low of Rs. 32.45 and Rs. 29.20 respectively. So far 23061 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 46.50 on 29-Apr-2011 and a 52 week low of Rs. 23.65 on 20-Dec-2011.

Last one week high and low of the scrip stood at Rs. 32.45 and Rs. 29.20 respectively. The current market cap of the company is Rs. 80.51 crore.

The promoters holding in the company stood at 41.84% while Institutions and Non-Institutions held 3.63% and 54.52% respectively. 

Simbhaoli Sugars (SSL), one of the country’s largest sugar refiners, in a joint venture arrangement with E D & F Man Holdings (E D & F Man) has started the project construction activities at Kandla, West Coast, Gujarat, India. It is likely to set up a green field 1,000 metric tonnes per day sugar refinery.

The company is going to implement the project through their joint venture company, Uniworld Sugars (USL). This new raw processing facility is being set up in proximity to the Kandla port (approximately 21 km) for eliminating the transportation charges while import of raw and export of white sugar and will be one of the least cost sugar refineries in the region. The estimated cost of the project, Rs 2,350 million, is being financed by way of long term loans and promoters equity. The debt finance for the project has been secured from banks. SSL shall provide the expert services of management and day to day operations, based upon its refining experience. E D & F Man will provide the advisory services on all aspects of the international market for raw and white sugar and issues related to the hedging of USL’s market risks in connection therewith.

The civil and structural designing work for the factory including equipment foundation has already been started. The refinery will be built with technical support from Integrated Casetech Consultants, a technology and operation maintenance company engaged in the technical consultancy in sugar, alcohol and related energy areas.

At full capacity, the refinery will be producing 300,000 metric tonnes of high quality white sugar (45 icumsa or other qualities) having a current market value of approximately Rs 8,700 million annually. The refinery will not only be producing imported raw sugar but can also process domestic raws to take care of the surplus inventory within the country.

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