Mohan Breweries to set up sugar unit

By Our Staff Reporter

CHENNAI, APRIL 10. The Chennai-based spirits-cum-beer maker Mohan Breweries and Distillers Limited (MBDL) is setting up a 3,000- tonne sugar plant at Chittoor in Andhra Pradesh. Simultaneously, it is putting up a 20-MW bagasse based co-generation power plant and a 60,000-litre industrial alcohol unit.

Implemented under a new company christened Sagar Sugar and Allied Products Limited, the project will cost Rs. 135 crores. Of this, Rs. 68 crores will be funded by IREDA and Rs. 22 crores by institutions such as State Bank of India. About Rs. 25 crores will come from an IPO which the company is planning shortly. The balance will come via promoters' contribution.

Mr. Natarajan Nandagopal, Executive Director of MBDL, said part of the sugarcane would be sourced from 10,000 acres allotted by the State Government. The balance sugarcane would be made good by unregistered growers. The power produced would be for self- consumption.

Mr. Nandagopal said the company was planning to tie-up with a foreign partner to manufacture international liquor brands in India. The partner would be Canadian and Scottish. With this, the company would be entering the premium segment of liquor brands. It was also planning to introduce white rum in the country, he said.

Mr. Nandagopal said the company would also be looking at renewable and non-conventional energy projects.

Earlier, the company signed an agreement with a Hyderabad-based Opusasia.com, for implementation of SAP solutions in the company. Mr. Nandagopal said SAP would link all the seven units located in the South. Introduction of SAP would make the decision making process quicker and bring down the cost of materials management and sales and distribution.

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