Published On:June 3 2014
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EID's AP sugar refinery to start production.
EID Parry India Limited, part of the Murugappa Group, said its Silkroad Sugar Pvt Ltd.(SSPL) sugar refinery at Kakinada in Andhra Pradesh would commence operations in mid-June.
'We are starting the plant and should see sugar coming out from June,' said V Ramesh, EID Parry's managing director, in an interaction with analysts recently.
SSPL, an erstwhile a joint venture with the multinational firm Cargill International, is now a wholly-owned subsidiary of the Murugappa Group.
The refinery project saw the light after a delay of nearly two years in its commencement, led by lack of gas supply. This led to a loss of Rs. 120 crore to the company in the last two years on interest payments and depreciation costs.
Due to fuel concerns, the refinery has been converted to coal-fired project with an additional investment.
EID Parry said it was investing around Rs. 60 crore in the changeover to coal-powered facility, completing an investment of over Rs. 500 crore.
Ramesh said the plant's capacity could be increased to 2,000 tonne per day, and at the peak capacity for about 300 days the production is 600,000 tonne. For 2014-15, however, it would target 300,000-400,000 tonne.
On the possibilities of merging Silkroad with the parent company, Ramesh said the first priority for them was to ensure the plant was up and running and stabilising at the main plant capacities.
The company has invested around Rs. 450 crore in the facility till last year.