Shree Renuka Sugars Ltd, which has been acquired by Wilmar Sugar Holdings of Singapore, plans to ramp up its ethanol capacity and expand the reach of its branded sugar.
Wilmar holds about 39 per cent stake in the company and has also made an open offer for acquiring 25.14 per cent shares. It is probably for the first time that an MNC has taken a stake in Indian sugar company.
New incoming Executive Chairman of Shree Renuka Sugars, Atul Chaturvedi, told media persons that the new management was keen on enhancing the ethanol business especially when there is a glut of sugar in the Indian market and international prices are subdued.
Chaturvedi said that today Indian market is ready for branded sugar, therefore Shree Renuka’s brand Madhur needs a lot more push in the market. The Indian consumers are also getting conscious about purity and hygiene, he said.
He pointed that in the late 1990s, sale of loose, unbranded edible oil was very high and branded oil sale was a small segment. Today the situation has reversed. Similarly branded sugar sales is also growing, which is an opportunity for the company.
He said that the Center is very proactive on ethanol, which is also an opportunity for Shree Renuka. The company already has an annual capacity of 12 to 14 crore litres of ethanol but with additional investments, the production can increase substantially. It should also be kept in mind that the crude oil prices are rising and the rupee losing ground. Therefore it makes sense to make more ethanol, Chaturvedi said.