Bajaj Hindusthan to merge group co with itself

The country’s largest sugar-maker, Bajaj Hindusthan will merge group firm Bajaj Hindusthan Sugar and Industries Ltd (BHSIL) Ltd with itself to consolidate its position in the Indian sugar market.

The proposal for merger was approved by the boards of directors of the two companies at separate meetings. The boards of both the companies have recommended an exchange ratio of one share of BHL for every five shares of BHSIL.

Following the merger, which is subject to shareholder and regulatory approvals, BHL will have a total sugarcane crushing capacity of 1.36 lakh tonnes a day, a distillery capacity of 800 kilolitres and bagasse-based co-generation thermal power capacity of 105 MW.

Upon merger, the combined capacities of BHL and BHSIL will strengthen BHL’s position in India’s sugar sector and will enable the company to further enhance the overall shareholder value. The amalgamation will result in the creation of a single larger entity in place of two smaller entities carrying on similar business under the same management and control.

Currently, BHL is India’s largest sugar producer with a total crushing capacity of 96,000 tonnes a day at its ten plants in Uttar Pradesh (UP). BHSIL has four sugar plants in UP with a total crushing capacity of 40,000 tonnes a day.