New Delhi, September 8, 2008 - Simbhaoli Sugars Ltd (SSL) has proposed to set up an associate Company outside India for trading in sugar and other commodities in the overseas market.
Simbhaoli Sugars has been catering to its markets with high quality products for over seven decades. In sugar, it has a wide global supply based upon producing EC I and EC II sugars. Simbhaoli caters to sugar retail clients, primarily in India, with its TRUST brand, to industrial clients such as major airlines, hotels and corporations such as beverages, confectionary companies and pharmaceutical giants such as Ranbaxy and GSK. The Company’s premium spirits are marketed in Ten Indian States, and its fuel ethanol provides green fuel for India’s E5 blending program. Co-generated power provides ecologically friendly power to India’s national grid. In its trading business, it has long-term historical links with international trading companies such as Cargill, ED&F Man, Sucden, Agrocorp, etc. as well as manufacturers in important sugar producing countries such as India, Brazil and Thailand.
“In this regard, SSL has initiated steps for incorporation of an Associate Company proposed to be named as Simbhaoli Global Commodities DMCC with Dubai Multi Commodities Centre Authority in the Free Trade Zone of Dubai, United Arab Emirates”, told Mr. Sanjay Tapriya, Director Finance of Simbhaoli Sugars Limited.
“The new Company is intended to be SSL international trading arm working for the sustainable development of its overseas business in marketing and trading sugar both and bulk and speciality/ consumer pack segments and alcohol related products in different markets. Dubai with its superior infrastructure is an ideal location for trading in the international markets”, said Dr. G. S. C. Rao, Executive Director of Simbhaoli Sugars Limited.
The Company would be engaged in trading/warehousing/hedging activities employing our experience in the Indian and international markets. This includes creating depots, moving sugar from surplus to deficit areas, and takes advantage of other arbitrage opportunities in the physical and futures markets. The Company will also import/export raw, white, and specialty sugars. From October 2007, several Indian ports have been approved to accept deliveries for the London International Financial Futures and Options Exchange (LIFFE). The trading business will be used to develop market based industrial pricing contracts for the Company’s buyers as well as trade large volumes. The Company intends to provide innovative solutions on commodity risk management using futures and forward contracts and pricing to meet the complex requirements of large industrial consumers.
SSL has been operating in the sugar, molasses, ethyl alcohol, fuel alcohol and other agro based commodities and has good association with international trade houses, large industrial consumers and quality manufactures based across India and other important sugar geographies. It intends to utilize this network to meet their requirements and to address their commodity related needs efficiently.
Simbhaoli Sugars Limited (SSL), is a 75 year old Indian Company, operates three technologically advanced sugar manufacturing facilities in North India and are capable of manufacturing up to 300,000 metric tons per annum (MTPA) of sugar In addition; the capacities are capable to toll raw sugar to the extent of 60,000 MTPA. SSL also has three alcohol distilleries alongside its sugar facilities with a combined capacity of 210 kilo liters of alcohol/ ethanol per day (KLD) is capable of producing and marketing a million cases of quality spirits in Ten Indian States. Simbhaoli and Chilwaria sugar complexes house bagasse- based cogeneration facility of 64 mwh, out of which 33 mwh is surplus and sold to the state power grid.