Bajaj Hindustan buys UP sugar co, capacity rises to 1.48 lakh tcd

MUMBAI: Country's largest sugar producer in the private sector Bajaj Hindustan continues its expansion spree with the acquisition of two plants in Uttar Pradesh.

Bajaj Hindusthan Sugar & Industries (BHSIL), a sister company of Bajaj Hindustan (BHL), on Monday announced the buyout of UP-based Phenil Sugars by merging the acquired company with itself.

Phenil Sugars has two plants in Basti and Walterganj in eastern UP, each with a capacity of about 6,000 tons crushed per day (tcd).

Post acquisition, the total capacity of BHL has gone up to 1.48 lakh tcd, company sources said.

Last year, BHL emerged as the largest producer of sugar in the private sector, relegating Balrampur Chini to number two position, by increasing capacities and establishing greenfield projects.

The Bajaj group has 16 mills in UP 10 mills owned by BHL and 6 by BHSIL post acquisition.

In a filing to the Bombay Stock Exchange, BHSIL said its board has approved the merger under which it would allot one equity share of Rs 1 each for every two shares of Rs 10 each held in Phenil Sugars.

The merger would be effective April 1, 2008, it said. Interestingly, the share of BHSIL grew by 12 per cent at the stock exchange on the report of acquisition, but the scrip of Bajaj Hindustan was down by 0.49 per cent.

Bajaj Hindustan closed at Rs 132.65 and BHSIl at Rs 28 at BSE.