Shree Renuka Sugars acquires 87 pc stake in Gokak Sugars

Mumbai, Oct 20 : Sugar major Shree Renuka Sugars today said it has acquired 87 per cent stake in the Karnataka-based Gokak Sugars for Rs 69.3 crore.

Gokak Sugars Ltd has a capacity to crush 2,500 tonnes cane per day and it owns a 14 mega watts co-generation power plant in Belgaum of Karnataka, Shree Renuka Sugars Ltd said in a filing to the Bombay Stock Exchange.

The 69.3 crore acquisition by the Renuka Sugars includes assumption of debt of Rs 65 crore, the filing said.

Further, the Karnataka government has awarded a 30-year lease of Raibag Sahakari Sakhar Karkhana Niyamit (Raibag SSKN) to the company, Renuka Sugars said.

Karnataka-based Raibag SSKN has a sugar manufacturing capacity of 2,500 tonnes crushed per day (TCD), the company said.

Apart from Sugar, Shree Renuka Sugars is also engaged in manufacturing and marketing of power and ethanol.

Last month, the company had entered in an agreement to form a company in joint venture with the public sector refinery Hindustan Petroleum Corporation Ltd (HPCL) to set up an integrated sugar plant in Maharashtra.