Investor Centre : Press Releases
Simbhaoli Sugar Mills Enters into additional 14 MW/ Hr Power Purchase agreement with UP Govt. and also implementing export order of 25,000 MT
New Delhi, March 1, 2006: The Simbhaoli Sugar Mills Limited, (SSML) having India’s largest integrated sugar refinery complex at Simbhaoli (Ghaziabad, Uttar Pradesh- Capacity 9500 TCD), has entered into a power purchase agreement with the Uttar Pradesh Power Corporation Limited for supply of additional 14 MW per hour (MWH) in addition to the existing agreement of 5 MWH. The aggregate power that will be sold to the local grid will be up to 19MWH. This exercise is a part of cogeneration project being implemented by the Company under the total Rs 350 Crores Capex plan, and will be undertaken in March 2007.
Simultaneously, the Company has signed an agreement with M/s Cargill International SA for the export of white sugar up to 25,000 MT under negotiated prices and in this context, the release order has been received from the Government of India. The prevailing price of white sugar quoted at London is ranging between US$440 to US$ 460 per MT.
Commenting on the same, Mr. Sanjay Tapriya, Director, Finance, Simbhaoli Sugar Mills Ltd., stated, ”We are going in for a major expansion and both these agreements are taking us one step ahead towards our goal. As a part of our growth plan, based upon our de-risked business model and diversifying revenue base, we are setting up a new 4000 TCD sugar mill with cogeneration unit in Uttar Pradesh (West). The plant is likely to go on stream in Nov-06.
The Company has improved its performance for the nine months ended December 31, 2005 . The company’s net profit has increased 252% with net sales recording a healthy 33% growth during the period.
Due to realization of higher unit price and concentration on production
of value-added products, the company’s profit before tax has
touched Rs. 358.70 million as against Rs 98.87 million in 2004-05
and profit after tax Rs 235.82 million as against Rs 67.04 million
during the corresponding period of previous year.