Shree Renuka Sugars acquires majority stake in Gokak Sugars

India's largest sugar refiner Shree Renuka Sugars today said it had acquired an 87-per cent stake in Karnataka-based Gokak Sugars Ltd for Rs69.3 crore, including debt of Rs65 crore.

Gokak Sugars Ltd. has a 2,500 TCD sugar manufacturing unit, which is equivalent to 7 per cent of Shree Renuka's total crushing capacity and a 14MW co-generation power plant at Kolavi village, Belgaum in Karnataka.

Narendra Murkumbi, managing director, Shree Renuka Sugar told a business news channel that Gokak Sugars will would add Rs12 crore to Shree Renuka's revenue.
The Belgaum-headquatered Shre Renuka has sugar refining capacity of 4000 tons per day --- the largest  in India --- comprising two 1000 TPD refineries integrated with its plants at Munoli and Athani and a 2000 TPD port-based refinery coming up in Haldia.

The acquisition by Shree Renuka, which aims to become the most-efficient integrated processor of sugarcane in the world, is in keeping with its strategy to expand capacity through acquisitions of low-priced sugar assets to raise its refining capacity.

In August it had announced its intention to set up a new 700,000 tons per annum sugar refinery  in the Mundra SEZ in Gujarat at  project cost of Rs350 crore to raise its sugar refining capacity to 6000tpd, which includes the 2,000tpd refinery at Haldia and the refining capacity at two of its integrated sugar mills in Karnataka

Shree Renuka Sugars, which also has interests in power and ethanol, has also leased the Raibag-based sugar cooperative Raibag Sahakari Sakhar Karkhana Niyamit, which has a daily crushing capacity of 2,500 tonnes, from the Karnataka government on a 30 year-lease.