India Cements’ promoters to sell Coromandel Sugars assets to Chamundeswari Sugars
Coromandel Sugars (CSL), backed by India Cements, is set to transfer its assets to Sri Chamundeswari Sugars (SCSL) of the Sakthi Group. Both operate in Karnataka’s Mandya district. The deal, likely worth ₹160–180 crore, involves asset transfer rather than an entity takeover. Initially, SCSL may run CSL’s plant on lease before completing the acquisition.
Coromandel Sugars (CSL), the sugar manufacturing entity promoted by India Cements (ICL), is all set for a sale of its assets to Sri Chamundeswari Sugars (SCSL), part of Coimbatore-based Sakthi Group.
Both SCSL and CSL have sugar plants in Mandya district of Karnataka, and both sides are believed to have held talks to finalise the deal, businessline learns. Both parties have chosen to structure the deal in the form of transfer of assets of CSL (including the sugar plant and others) to SCSL, rather than takeover of CSL as an entity. “SCSL may initially run the CSL plant on lease basis for a few months and then undertake transfer of assets,” sources said.
businessline could not confirm the valuation of the assets but industry trackers say that the value of CSL’s assets, given its capacity, could be ₹160-180 crore. Till March, 49.99 per cent of CSL’s shareholding was held by Coromandel Electric Company and the remaining by Sri Saradha Logistics, an ICL group company. Coromandel Electric was, until recently, a subsidiary of ICL. However, in March, ICL sold their entire stake in CECL to Chennai-based Adam & Coal Resources Private Ltd.
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Source : The Hindu Business line
