NSL Sugars Ltd has acquired 100 per cent stake in Jay Mahesh Sugar Industries Ltd, a wholly owned subsidiary of Spray Engineering Devices Ltd, for an enterprise value of Rs 231 crore ($51.4 million), the company has said in a statement.
JMSIL sugar plant is located at Majalgaon in the Beed district of Maharashtra, with a crushing capacity of 5,000 TCD and a Co-Gen project of 30 MW. The company is also engaged in manufacturing, processing, refining, selling, trading and exporting of sugar and various derivatives of sugar products.
Anand Rathi Advisors Pvt Ltd was the advisor to SEDL Group for this transaction.
India is the second largest producer of sugar in the world with a share of nearly 15 per cent in the global market. The country is expected to see a production of over 26 million tonne in this financial year, as compared to 23 million tonne during the last year. But in spite of the rise in production, India will export only about a million tonne of sugar this year. On the global front, the production is expected to touch 168 million tonne.
NSL Sugars Ltd is a Bangalore-based company established in 2000, with plants in Koppa, Aland, Sirguppa and Ramakrishnapura across Karnataka. The company is also engaged in agricultural seeds, textiles, power, real estate and infrastructure businesses. Its unit Nuziveedu Seeds is backed by private equity major Blackstone.
Spray Engineering, a flagship company of Mohali-based SED Group, focuses on redesigning and engineering of processes & equipment. It offers integrated, cost-effective EPC solutions for sugar and other process industries. New Vernon Private Equity Ltd and Klondike Investments Ltd joined SEDL as financial partners in 2006.