Shree Hanuman Sugar & Industries Limited Unlisted Shares

(i) Shree Hanuman Sugar & Industries Ltd., (SHSIL) was incorporated in the year 1932 with the main object of manufacturing sugar. The first unit was set up in the year 1936 at Motihari, Bihar, with an initial capacity of 250 TCD. The location is strategic, as it is well connected by national highway No.28 and main rail line connecting Patna.The sugar plant is located in agro- rich Indo gangetic plains of North Bihar. Subsequently, the capacity was increased to 1500 TCD in 1967-68 along with the development of cane in the area. The factory was leased to Gobind Sugar Mills Ltd., in the year 1969 and the lease was terminated on expiry of 1995. Thereafter, the factory was leased to Eastern Sugar & Industries Ltd. in the year 1995. The current capacity of the unit is 2500 TCD. By debottlenecking the capacity can go upto 4000 TCD.

(ii) Presently SHSIL is engaged mainly in Sugar Business. The sugar factory of the company is located at Motihari, one of the sugar cane rich areas of Bihar. The factory is a seasonal one and is operational from November to March. The capacity of the factory is 2500 TCD. The company proposes to undertake an upgradation programme to achieve a capacity of 4000 TCD in the 1st phase and 6000 TCD in the 2nd phase in the next two years, to further improve its viabilities. Looking into the future prospects of the Sugar Industry, management’s long term experience, infrastructure facilities already set-up at its Sugar Mill and locational advantages, it is opined that enhancement in Company’s Sugar Plant capacity up to 15,000 TCD will be viable and will ensure optimum utilization of its infrastructure facilities, leading to economies of scale, enlarged sales volume and higher profitability.