Shree Renuka Sugars (SRSL) has acquired 87% stake in Gokak Sugars for Rs 69.3 crore in order to access more refining capacity at a cheaper rate. The deal includes taking over a debt of Rs. 65 crore. SRSL has also leased Raibag Sahakari Sakhar Karkhana Niyamit (SSKN) for a period of 30 years from Government of Karnataka. Raibag SSKN has sugar manufacturing capacity of 2500 tones cane per day.
Currently the leader in fuel ethanol in India with a 20% market share, Shree Renuka Sugars is an integrated manufacturing company with strategic focus on Sugar and its allied products in power and ethanol.
Gokak Sugars has a capacity to crush 2,500 TCD and has a 14 megawatt co-generation power plant. SRSL had last month entered into a deal with state-run refiner Hindustan Petroleum Corp Ltd to set up a sugar plant to produce ethanol in Maharashtra.
In August this year, SRSL had also announced a new refinery at Mundra with 700,000 ton per annum refining capacity. It had also planned to increase the crushing capacity at its plants in Athani and Havalga. The earlier acquisitions of SRSL include Ratnaprabha Sugars and Godavari Bio-fuels in Maharashtra.
Another major sugar manufacturer, Bajaj Hindusthan Sugar & Industries (BHSIL) had bought out UP-based Phenil Sugars in September this year as part of its expansion spree.