Vishwanath Sugar and Steel Industries Ltd has now become Vishwaraj Sugar Industries Ltd. The company earlier had plans to diversify in the steel sector, but since they have been deferred indefinitely, the name of the company has been changed to Vishwaraj Sugar Industries Limited to reflect its present activities.
The market regulator SEBI has already given its nod to launch the initial public offer (IPO) of the company and it proposes to enter the capital markets to fund its expansion plan in the near future. Ashika Capital Limited is the sole book running lead manager for this IPO.
The company is primarily into the business of production of sugar, alcoholic spirits by distillation including ethanol, blending and bottling of Indian Made Foreign Liquor (IMFL) and generation of power. The company has an integrated sugar production facility located at Bellad Bagewadi, Belgaum district, North West Karnataka, which has been classified as a high-recovery zone for sugar production by the Government of India.
Under the new name, the company proposes to expand its integrated production facility from the proceeds of the proposed public issue. The expansion plan involves increasing the sugarcane crushing capacity from 5500 TCD to 11000 TCD and augmenting co-generation power plant from 36.4 MW to 66.4MW.
From the proceeds of the issue, the company also proposes to deploy a part of the funds as capital expenditure to expand the capacity of its distillery from the present 35 KLPD to 100 KLPD leading to an increase in its IMFL production capacity from 2,500 boxes per day to 5,000 boxes per day.
As per the restated financial statements, Vishwaraj Sugar had a total income of Rs 42,581.96 lakh and net profit after tax of Rs 5,159.24 lakh for the year ended March 31, 2012, as compared to total income of Rs 35,429.35 lakh and net profit after tax of Rs 4,309.32 lakh ending March 31, 2011. Its total sales have grown at a CAGR of about 36 per cent from Rs 9,362.30 lakh in 2008 to Rs 32,270.68 lakh in 2012. Its PAT has grown at a CAGR of about 21 per cent from Rs 2,349.18 lakh in the fiscal year 2008 to Rs 5,159.24 lakh in 2012.
