Sugar Sector To Do Well As Ethanol Is A Big Game Changer, Says Shree Renuka Sugars
Shree Renuka Sugars Ltd. expects the sugar sector to do well in the coming years as ethanol has become a big game changer.
The company, which is set to buy UP-based Anamika Sugar Mills Pvt. for approximately Rs 200 crore, is diversifying geographically.
“If you look at Renuka’s asset base, we are largely concentrated in the states of Karnataka and Maharashtra. So we had to de-risk our business geographically, and that is the reason we went to UP,” said Atul Chaturvedi, executive chairman of Shree Renuka Sugar.
The company found it logistically difficult to transport sugar as it was only present in western and southern India, he said. “Sending Madhur (its retail brand) from western and southern India was a logistical nightmare, so it made more sense for us to be present in the most populous part of the country,” Chaturvedi said.
Increasing Capacity
The company has a cane crushing capacity of close to 6.2 to 6.3 million tonnes in Maharashtra and Karnataka. With the acquisition, the company will have a capacity of more than 7 million tonnes, he said.
“Going forward, we will look at making ethanol in UP in the future. As a company, we have focused on ethanol in the long term,” said Chaturvedi.
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