Empee Sugars & Chemicals Ltd Poised for Q2 Turnover Growth by 900 %

Chennai (PRWEB) September 28, 2005

Empee Sugars & Chemicals Ltd. (ESCL), part of Chennai based Empee Group, estimates a growth in turnover by more than 400% to Rs.70.00 crores for the six months ending September 2005 compared to the turnover of Rs.13.77 crores for the corresponding period of the previous year. The company estimates to post a net profit of about Rs. 4.00 crores for the aforesaid Period as against loss of Rs. 1.71 crores for the corresponding period in the previous year.

The company estimates a significant jump in the turnover during the second quarter. The turnover is estimated to be about Rs.35.00 crores a growth of more than 900% compared to the turnover of Rs. 3.40 crores in Q2 of 2004 -05.

Speaking on the performance of the company and the future, Mr. P.K. Das, Vice President - Finance & Company Secretary, said, “ESCL continues its strong and sustained performance in the second quarter and expects the growth to continue for the future period. The reason for ascend in company’s performance could be attributed to the optimum capacity utilization, concrete steps towards improvement in efficiency, effective utilisation of available resources and opportunities and cost optimisation in all fronts. ESCL continues to put in efforts to expand capacities in all its activities, cost optimisation and ultimately improvement in the bottom line. The ensuing crushing season performance is also expected to be far better than the previous year.

The company has processed 22000 MT of raw sugar imported under advance license scheme, during the Q 2. With the foregoing the Company could utilize its idle production capacity during Q 2. ESCL expects to crush around 4 lakh tonnes sugar cane during the ensuing sugar season.

Commenting on the future for ESCL and the Sugar Industry, Mr. R. Chandra Mohan, Sr. Vice President, Empee Sugars & Chemicals Ltd., said, “The current year looks extremely promising for Empee Sugars and Chemicals in terms of growth. We have laid our plans for the future period in terms of production capacity utilisation and turnover. As planned, the implementation of wash to ENA (Extra Neutral Alcohol) Plant is under progress and is expected to be operational by the end of this calendar year.”

ESCL has aggressive plans to double its crushing capacity. In order to increase the crushing capacity, company is putting its all round efforts to increase the cane availability in its area. Company is identifying suitable variety of seed from the sugar cane research station for its multiplication in three tier seed nursery programme. The seed materials are provided on interest free loan basis to the farming community. The company is manufacturing bio fertilisers in house which are also provided to the farming community. Recommended quantity of fertilisers, weedicides, pesticides are also provided on loan basis. Company is encouraging drip irrigation in its command area. Various programmes to educate and encourage growing sugar cane are also conducted. Company has an aggressive and technically sound cane development department to take care of the expansion activity.

Note to the editors:

Empee Sugars & Chemical Ltd. (ESCL), part of the Empee Group of Companies, was incorporated in 1991. The present share capital of the company is Rs.4197.29 lakh divided into 419.73 lakh equity shares of Rs.10/- each. The Company has state of art sugar manufacturing plant in Nayudupet, Andhra Pradesh. The unit has a capacity of crushing 2800 Tonnes per day. The company has a command area of 50,000 acres under assured irrigation facility. The company also has an industrial alcohol unit with a capacity of 30 KL spirit per day. Biotechnology division of the company produces bio-fertilizer and is sold to the farming community at subsidized rate to encourage farming of sugarcane.

For more information on Empee Sugars & Chemicals Ltd:

Mr. P. K. Das    Varghese / Gibin

28522510, 28523514    Hanmer & Partners Communications Pvt. Ltd.

pkdas @ empeegroup.co.in    52144890 / 92

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