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Simbhaoli Sugars transfers existing power businesses on slump sale basis to SPL

29 Jan 2013 Evaluate

Simbhaoli Sugars (SSL) has transferred its existing power businesses situated at Simbhaoli and Chilwaria on slump sale basis as going concern to Simbhaoli Power (SPL), a special purpose vehicle set up for this purpose. The transfer has taken place with effect from January 26, 2013 at a fair market valuation of Rs 159.90 crore.

Prior to this, SSL entered into a joint venture with Sindicatum Sustainable Resources Group (Sindicatum), a global developer and operator of clean energy projects. Sindicatum, through its subsidiary company Sindicatum Captive Energy Singapore has agreed to acquire 49% of the share capital in SPL.

SPL will implement an expansion plan to enhance aggregate power generation capacity from 52 MW to 85 MW and is working with banks to finalize leading terms. The expansion will enhance the earnings of SSL from the power business and improve its net worth position.

Simbhaoli Sugars has three sugar plants (Simbhaoli and Brijnathpur, Western UP and Chilwaria, Eastern UP) with a combined, crushing capacity of 20,100 TCD. It is capable of producing a wide range of world-class sugars i.e. white crystal refined sugar, pharmaceutical grade sugar, EU grade sugar (foe exports), superfine sugars, sugar cubes and candy sugar.

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