Simbhaoli’s Kandla Unit to start operation by December

NEW DELHI: Eyeing the export market, Delhi based Simbhaoli Sugars is all set to commission its sugar processing unit near the Kandla port in Gujarat by the end of this year.

The plant has a crushing capacity of 1,000 tonne per day and is expected to produce 3 lakh tonne of white sugar. Company officials said the total investment on the unit was Rs 280 crore.

“Proximity to the port would help us tap the export market for white sugar,” said an official of the company.

Announced in April last year, the project is being built by Uniworld Sugars, a joint venture of Simbhaoli with European firm ED&F Man Holdings. “We will source cane from Maharashtra. This will reduce our transportation cost,” said an official.

Simbhaoli has its three sugar units in Uttar Pradesh. “This is our effort to venture out of UP and look at markets beyond the country,” said the official.

With a huge surplus production this season and good cane crops this year, the company is hopeful that exports would get a huge impetus in the sugar season starting next month.

In the sugar season 2012-13, India produced 24.5 million tonne of sugar, which is expected to go up to 25 million tonne in 2013-14.

There is a huge demand for Indian white sugar in the neighbouring countries. In sugar season 2011-12, 34 lakh tonne was exported to sugar deficit markets like Pakistan, Afghanistan and Middle Eastern countries. In the current season, 60,000 tonne has been tied up for exports yet.

Exports world over are dominated by Brazil, the largest sugar producer. This sugar season, which will end in September, Indian exports have suffered due to rupee depreciation and cheaper exports from Brazil.