Bajaj Hindustan merges sister sugar firm to emerge larger, stronger
17 June 2010
Bajaj Hindusthan Ltd (BHL), already India's top sugar and ethanol manufacturing company, today announced the merger of sister company Bajaj Hindustan Sugar Industries Ltd (BHSIL) with itself.
Mumbai-bases BHL said the boards of both BHL and BHSIL have unaniomously approved the merger of the two companies subject to necessary approvals.
BHSIL shareholders will reconvene share of BHL for every five shares held in BHSIL.
The appointed date of merger is 1 April 2010.
With a combined crushing capacity of 1,36,000 tonnes of sugarcane a day, the merger is expected to enhance efficiencies of scale and synergies.
"Post merger, BHL will have a sugarcane crushing capacity of 1,36,000 tonnes per day, distillery capacity of 800 KL per day and surplus bagasse base co-generation thermal power capacity of 105 MW. Upon merger the combined capacities of BHL and BHSIL along with their respective inherent operational strengths will strengthen BHL's position in India's sugar sector and will enable the company to further enhance overall shareholder value," Kushagara Bajaj, joint managing director of BHL and chairman of BHSIL, said.
"The amalgamation is a natural consequence and will result in the creation of a single larger entity in place of two smaller entities carrying on similar business under the same management and control, thus resulting in rationalisation of operations, better profitability, enhanced production capacity and stronger competitive position," he added.