ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Ishwar Bhuvan Hotels

EPW Research Foundation Indo Gulf Industries INDO GULF INDUSTRIES is engaged in the manufacture of industrial explosives and accessories. In order to widen its industrial and product base, the company is now diversifying and is setting up a project to manufacture white sugar crystals and allied products with a capacity of 2,500 ted expandable to 3,500 ted with co-generation of 6 MW of power at an estimated cost of Rs 49.68 crore at Meizapur in UP. The company has tied up with KCP, Madras, for supply of total plant and machinery. KCP is one of the premier manufacturers of plant and machinery for sugar plants and has set up more than 40 sugar plants in India and abroad. At 100 per cent capacity utilisation the company would have an annual requirement of 45 lakh quintals of sugarcane. It proposes to meet its requirement through cultivation for which an intensive programme is being undertaken. The upcoming sugar plant is expected to commence commercial production by November this year. The company is entitled to a free sale quota of 100 per cent of its production for the first nine years as applicable to new sugarcane projects located in 'Other Recovery Zones'. The entire quantity of molasses is to be sold to various distilleries for the manufacture of potable and industrial alcohol. Bagasse, the other by-product, is to be used for co-generation of power for captive consumption. Surplus bagasse is to be sold to paper mills and the industries located around the sugar mill. In order to part finance the cost of the project, the company is entering the capital market on February 14 with a public issue of 11,08,200, 12 per cent unsecured FCDs of Rs 155 each at par aggregating Rs 1,717.71 lakh. Each FCD would consist of two parts Part A and Part B of Rs 77.50 each. While Part A will be compulsorily and automatically converted into one equity share of Rs 10 at a premium of Rs 67.50 per share on allotment, Part B of Rs 77.50 would be compulsorily and automatically converted into one equity share of Rs 10 at a premium of Rs 67.5 per share on the expiry of 12 months from the dale of allotment of the FCDs.

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