Bajaj Hindusthan (BHL) of the Bajaj Group is India`s largest sugar and ethanol manufacturing company. The company produces sugar and industrial alcohol at its plants at Gola (capacity 9,000 TCD) and Palia (5,000 TCD) in the cane-rich area of western Uttar Pradesh. The company has a sugar capacity of 56,000 TCD. It plans to raise this to 95,000 TCD by Oct`06. It also intends to step up its well distillery capacity to 320 KLPD by Oct`06. The company has planned a Rs 7.5 billion expansion to scale up its production capacity to 95,000 TCD by September 2006. Under this capex plan, it will add three greenfield projects in Saharanpur, Pilibhit and Lakhimpur regions of UP.
Part of this expansion plan will be financed through global market borrowings and internal accruals to the extent of Rs 2.7 billion. After expansion, BHL will become Asia`s 3rd and the world`s 6th largest sugar producer. The company is also setting up a new 160-kilolitre per day capacity distillery at Kinnauni near Meerut in Uttar Pradesh.
The estimated project cost is Rs 600 million. In the year 1988, The Hindusthan Sugar Mills was renamed as Bajaj Hindusthan and shortly thereafter in 1990, Sharda Sugar & Industries, its subsidiary, was amalgamated with Bajaj Hindusthan. Subsequently, the company acquired Pratappur Sugar and Industries in UP giving itself a strategic foothold in the sugar-deficient region of eastern UP.
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