Managing director Vivek Saraogi told shareholders at the company's AGM that the company will increase capacity by modernisation as well as physical expansion. Its crushing capacity will be increased by 17 per cent to 24,000 tonne annually. The expansion will be done at all the three mills - Balrampur, Tulsipur and Babhnan - with the highest increase at Babhnan.

Saraogi explained that the cost of a new project worked out to be too high, at around Rs 55 crore,he said.

The company reported an increase in turnover to Rs 444.91 crore for the year to March 31, 2000, from Rs 321.72 crore in the previous fiscal. Net profit, however, dipped to Rs 23.07 crore from Rs 43.17 crore in the previous fiscal. Saraogi attributed the company's lower net profit to the government's "faulty" sugar import policies, which created a glut in the domestic market. In addition to this, floods in Uttar Pradesh hit the recovery rate by diluting the amount of sugar that could be extracted from cane. However, the company has reported a better performance in the first quarter of the current fiscal, with a net profit of Rs 10 crore.