INDIA BUSINESS WORLD - DECEMBER 16^th - DECEMBER 31^st - 2007

INDIA GLYCOLS BUYS SHAKUMBARI SUGAR FOR RS 47 CRORE

INDIA Glycols, a petrochemicals and specialty chemical player, said it has acquired a majority stake in Shakumbari Sugar & Allied Industries (SSAI) for Rs 47 crore. The company, which has acquired 96.56% in SSAI, would also invest Rs 180 crore on expanding the capacity of the acquired unit, India Glycols said in a statement.

With the acquisition, the company would be vertically integrated to produce additional ethanol. India Glycols would further enhance the capacity of SSAI from 3,200 tonnes per day to 7,000 tonnes per day. The distillery's capacity would be expanded to 250 kl per day from 40 kl currently. SSAI has a co-generation captive power capacity of 8 mw, which would also be increased to 40-50 mw, the company said.

India Glycols also intends to sell the additional power after meeting the captive requirement, which would lead to better margins. It has recently established its subsidiary in Singapore to augment its activities in South-east Asian region and other related areas, the statement added.