To benefit from the expected growth of markets, improved operational efficiency and economies of scale, and to de-risk its business model, Simbhaoli Sugars has expanded its co-generation and distillation capacities in its Simbhaoli facility, and developed its Chilwaria facility into a fully integrated sugar complex through the addition of an ethanol distillery and is expanding its current co-generation power plant units. Upon completion of its expansion programme, Simbhaoli Sugars will be able to reduce its average power consumption per MT of sugar produced thereby saving additional bagasse for the co-generation of electricity for an additional 60-80 days per annum.

To maximize the benefit from government incentives, Simbhaoli Sugars made the strategic decision in year 2004 to invest a total of approximately Rs. 4.64 billion to expand its sugar and sugar by-products businesses between April 2004 and March 2008. This extra crushing capacity is available through increasing the existing capacity at the Chilwaria facility and the establishment of a greenfield 4,000 TCD sugar facility located in Brijnathpur, in Western UP. The Brijnathpur sugar facility is contiguous to the Simbhaoli facility.

The cogeneration of power capacity of the Company is raised to 34 Mw/hr surplus; for which it has entered into power sale agreements with State utility company. SSL is eligible for Clean Development Mechanism (CDM) benefits for power plants, and has received approval for its Simbhaoli bio power plant in this respect.

The expanded operations in sugar businesses shall provide additional bagasse saving which will allow sugar refining and bio-power generation for a major part of year. Going ahead, SSL has plans to further increase its ethanol, bio-power and sugar refining capabilities.