The port-based sugar refinery, with a capacity to process and refine raw sugar amounting to 1,000 tonne per day (TPD) would enhance the companys overall sugar refining capacity to 3,000 TPD and will start functioning in 14 months.
This is the first instance of a north Indian sugar company setting up a stand-alone refinery at a port.
Speaking to FE, CEO of Simbhaoli Sugars, GSC Rao said the sugar cycle is expected to continue in favour of import and so the company has decided to set up a refinery to meet the likely sugar deficit in the country by processing raw sugar for domestic supply or re-export the white.
Globally, the production of sugar will be at the lowest at the beginning of 2009-10 sugar year and in India, too, insufficient rains have had an adverse impact on sugarcane availability supplemented by a rising demand to a structural deficit of 5-7 mmt. Our refinery will produce about 3 lakh mt of white sugar in a year, operating at almost 90-95% of the capacity, having an approximate market of Rs 700 crore, he said.