Published On:October 24 2008
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Shree Renuka buys majority stake in Gokak Sugars
Bangalore: Shree Renuka Sugars (SRSL) has acquired a majority stake in Gokak Sugars in Karnataka that augments its crushing capacity by 2,500 (TCD) tonnes crushed per day.
SRSL has acquired 87 per cent stake for Rs 69.3 crore that includes a cash outflow of Rs 4.3 crore and an assumption of long-term debt of Rs 65 crore, the company said in a press release.
Gokak Sugars has a 14-MW cogeneration plant at Kolavi village in Belgaum district and the 2,500 TCD sugar manufacturing unit would start operating in the current season from November.
Meanwhile, the Karnataka Government has awarded SRSL the 30-year lease of Raibag Sahakari Sakhar Karkhana Niyamit for a total lease payment of Rs 126 crore spread over 30 years.
SRSL is a fully integrated company focused on manufacturing and marketing of sugar, power and ethanol. In the current season, SRSL will operate with a crushing capacity of 37,500 TCD, the release said.
SRSL currently has long-term debt of Rs 722 crore and would have a debt/equity ratio of less than one for the year ended September 2008. For the nine months ended June 2008, the company posted net profit of Rs 97.1 crore on a total income of Rs 1,493.2 crore.