Sakthi Sugars has commenced work on its expansion plans which is expected to be commissioned by September 2007. This expansion will be funded by the foreign currency convertible bonds (FCCB) issue last month.
Once complete, the sugar major will have a total installed sugar crushing capacity of 18,500 tonnes per day (tcd). The company plans to enhance the capacity of the plant in Sakthinagar to 9,000 tcd and is in the process of setting up a 3,500 tcd greenfield project in Tamil Nadu. It also has a unit in Sivaganga, Tamil Nadu.
Apart from enhancing its crushing capacity, the companys targeted investment on the co-generation plant has been estimated at Rs 310 crore. At its Sakthinagar unit, the company plans to increase the co-generation capacity from the existing 35 MW to 60 MW, while at Sivaganga, it is expected to go up to 35 MW from 5 MW at present.
The power generating capacity at the proposed greenfield project site is expected to be of the order of 25 MW. "Except for the Sakthinagar co-generation plant, everything else would be commissioned by June 2007. The Sakthinagar co-generation plant will be commissioned by September 2007