 PRESS RELEASE |
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| Upper Ganges Sugar & Industries Ltd.in Expansion & Diversification Mode. |
| Kolkata, 20th February 2006. |
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Audited Financial Results for the year 2004-05. |
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Expansion-cum-Diversification of Bharat Sugar Mills, Sidhwalia (Bihar), a unit of UGSIL. |
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Merger of Sugar Division of New India Sugar Mills Ltd. with UGSIL. |
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The Board of Directors of Upper Ganges Sugar & Industries Ltd. (UGSIL) at its meeting held on the 20th February, 2006 at Kolkata approved the Audited Financial Results of UGSIL for the year ended 30th June, 2005, after incorporating therein the accounts of the Sugar Division of New India Sugar Mills Ltd. which has merged with UGSIL with effect from 1st October, 2004, and expansion-cum-diversification of Bharat Sugar Mills, Sidhwalia (Bihar), a unit of UGSIL.
UGSIL is undertaking a two fold strategy towards overall growth of the Company. The Company is in the process of expanding its existing sugarcane crushing capacity and de-risking its business model through diversification into downstream utilization of its by-products. |
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Turnover up 31.50% YoY at Rs. 379.39 crores. |
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PBDT up 66.26% YoY at Rs. 60.02 crores. |
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| FINANCIALS AT A GLANCE |
Rs. in crores
(Audited) |
| Particulars |
Year ended 30th June, 2005. |
Year ended 30th June, 2004 |
| Gross Sales |
379.39 |
288.52 |
| Profit before Depreciation, Exceptional Items and Tax (PBDT). |
60.02 |
36.10 |
| Profit after tax but before Exceptional Items. |
45.98 |
16.81 |
| Profit after Tax. |
13.69 |
16.81 |
| EPS (Rs.) |
| i) Before Exceptional Items |
65.70 |
24.09 |
| ii) After Exceptional Items |
19.56 |
24.09 |
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Upper Ganges reported steep increase of 66.26% in its PBDT at Rs. 60.02 crores and a satisfactory increase in its turnover by 31.50% at Rs. 379.39 crores for the year ended 30th June, 2005 as against Rs. 36.10 crores and Rs. 288.52 crores respectively for the previous year ended 30th June, 2004.
Exceptional Items include the differential cane price paid for the sugar seasons 1996-97, 2002-03 and 2003-04 as per Order of the Hon’ble Courts.
In view of the delay in the finalization of the annual accounts for the year ended 30th June 2005, due to the de-merger process, the Board of Directors had declared a dividend @ Rs.4 (i.e. 40%) per Equity Share of Rs.10 for the year 2004-05 in September 2005 as against a dividend @ Rs. 3 (i.e. 30%) per Equity Share for the year 2003-04. This amount has already been distributed to the shareholders.
Expansion-cum-Diversification of Bharat Sugar Mills at Sidhwalia (Bihar), a unit of UGSIL
The sugarcane crushing capacity of Bharat Sugar Mills, Sidhwalia (Bihar), a unit of the Company, is being expanded from 2500 tonnes crushing daily (TCD) to 5000 TCD with a sulphur free Sugar Refinery which will not only facilitate greater economies of scale but also value addition.
In view of the increasing demand for electricity, and to provide for more remunerative utilization of bagasse, a by-product, a 18 MW Co-generation Plant is also being set up at Sidhwalia for export and captive use of power.
The expansion of the crushing capacity to 5000 TCD and the setting up of a 18 MW Co-generation Plant at an estimated capital outlay of Rs. 125 crores is expected to go on stream from the start of crushing operations for the season 2007-08. This project would be entitled to the benefits under the incentive package announced by the Government of Bihar for the promotion of sugar industry in its state, like subsidy of 10% or Rs. 10 crores, whichever is less, on the total investment made on plant and machinery, reimbursement of excise duty on production of sugar, exemption from payment of purchase tax on purchase of sugarcane, payment of duty on electricity and from payment of stamp duty and registration fee on purchase of land, etc. for a period of five years from the date of commencement of production.
Merger of Sugar Division of New India Sugar Mills Ltd. (NISML) with UGSIL.
In order to increase the manufacturing capacity of the Company, the Sugar Division of NISML at Hasanpur (Bihar), with all its assets and liabilities has been merged with the Company, with effect from 1st October, 2004, pursuant to a Scheme of Arrangement which has been approved by the Hon’ble High Courts at Calcutta and Allahabad vide their Orders dated 7th December, 2005 and 19th January, 2006 respectively. In terms of the Scheme all employees of NISML engaged in its Sugar Division have become employees of UGSIL.
Integrated Sugar Complex:
The installation of a 24 MW Co-generation Plant at Seohara, for export and captive use, at an estimated capital outlay of about Rs. 100 crores is under implementation, and the plant is likely to go on stream at the beginning of the calendar year 2007.
To meet the increasing demand for ethanol, which is a comparatively environment friendly viable alternative to the fast depleting non-renewable fossil fuels, the Company has undertaken the expansion of the Company’s Distillery at Seohara from the existing capacity of 55 klpd to 100 klpd at an estimated cost of around Rs. 36 crores which is progressing as per schedule and is expected to commence production at the enhanced capacity from December, 2006.
As the Company already has a sugar factory at Seohara (U.P.) with a crushing capacity of 11000 TCD and after expansion a Distillery, with a capacity of 100 klpd and 24 MW Co-generation Plant, the Company will have a state of the art Integrated Sugar Complex in the country.
Commenting on the new business initiatives taken by UGSIL, Mr. C.S Nopany, Director, UGSIL, - “Our focus has been to add value to our business by investing in renewable energy. This is in consonance with the business model envisaged for Upper Ganges to make its operations more resilient to any cyclical or other downturn in the Sugar Industry.”
About UGSIL:
UGSIL belongs to the renowned K.K. Birla Group of Companies. Since its inception in 1932, UGSIL has developed and enhanced to become the Pioneers in Sugar Industry and is considered as one of the fastest growing company in the Sugar Industry. The Company has three sugar manufacturing units at Seohara in Uttar Pradesh and at Sidhwalia and Hasanpur in Bihar with an aggregate crushing capacity of 15500 TCD, a Distillery at Seohara and a Tea Estate in Upper Assam - Cinnatolliah Tea Garden. The Company’s shares are listed at the NSE, BSE and CSE and are actively traded having a 52 week high of Rs. 457.65. |
For further information please contact:
Ms. Swati Jalan
Communications 2.0
Ph - 98301 11376, 30954039 |
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