Triveni Engineering seeks to invest Rs 210 crore in sugar and transmission businesses
A sum of Rs 130 crore will be invested in the modernization of three sugar units of the company at Khatauli, Deoband and Sabitgarh in Uttar Pradesh, according to Tarun Sawhney, managing director of Triveni Engineering. This will help the company double its pharmaceutical sugar capacity which fetches a significant premium over refined sugar. The investment will also help the company increase the share of refined sugar from 40% to 60% of its total production.
Typically, refined sugar carries a premium of around 75 paise per kilogram with marginal marginal cost, leading to higher markups over sulphite sugar, the company said.
It will also invest Rs 80 crore in its power transmission business to upgrade, expand and purchase machinery. The company said that in FY22, the power transmission business recorded its highest annual revenue and profitability increased by 57% and the new investment will help continue this momentum. This company has an outstanding order book of Rs 221 crore as of March 31.
Triveni increased its ethanol production capacity from 320 kiloliters per day (KLPD) to 520 KLPD earlier this month with an investment of around Rs 350 crore. With the completion of two ongoing expansion projects, the company plans to increase this to 660 KLPD by next month. This makes it one of the leading ethanol manufacturers in the country.
Ethanol manufacturers have invested heavily in increasing their manufacturing capacities, encouraged by the government’s desire to increase the blending of ethanol and gasoline. The Center recently announced its intention to bring forward its goal of 20% ethanol blended in gasoline from 2025 to 2023.