Bajaj Hindusthan has announced an expansion programme of Rs.750 crore to set up three greenfield sugar units at Saharanpur, Pilibhit and Lakhimpur in Uttar Pradesh. These units will have a combined capacity of 27,000 tccpd.

Considering its ongoing expansion plans, BHL's total cane crushing capacity will increase from 53,000 tccpd to 95,000 tccpd by October 2006 -- the beginning of the 2006-07 sugar season. Annual sugar production, post-expansion, will be around 2 million tonnes, making BHL amongst the top five global sugar producing companies.

Funds for the proposed expansion have been tied up; around Rs.261 crore would come through a GDR issue, Rs.217 crore through bonds (long term debt) and the remaining Rs.272 crore from internal accruals.

As the result of this expansion plan, BHL has decided to withdraw its bid for 24 sugar mills in Uttar Pradesh. However, it would look at acquisition for further growth as possibilities of capacity expansion are exhausted with this expansion.

ProjectsToday adds: The above new projects are over and above the company's ongoing expansion plans that would add 28,000 tccpd through four new units, all in Uttar Pradesh. Of this one 7,000 tccpd unit was commissioned in Meerut in November 2004. Three other units are coming up Bilai (Bijnor district), Thanabhawan and Bhaisana (both in Muzaffarnagar district). As of 2004, BHL had two units -- at Golagokarannath and Palia Kalan -- both in Uttar Pradesh, with total capacity of around 25,000 tccpd.

The following table summarizes the growth in cane crushing capacity of Bajaj Hindusthan since January 2004.

Also See:

Bajaj Hindusthan raises $100 million from overseas market (12-May-05)