Ponni Sugars (Erode) Ltd - Stock Valuation and Financial Performance

Ponni Sugars (Erode) Ltd was incorporated in 1996, it is an offspring of Ponni Sugars and Chemicals (PSCL) under a Demerger Scheme sanctioned by the Hon’ble High Court of Madras on September 10, 2001. In terms of the scheme, the company took over the business of Erode Undertaking with concurrent transfer of major part of stakeholders’ interest in PSCL to the company. Ponni Sugars is the brainchild of late S Viswanathan, a renowned industrialist of the South. The Erode sugar mill was set up with 1250 TCD capacity in 1984 in a record time of 12 months. It achieved full capacity crushing during the very first year of its commercial operation that enabled declaration of a maiden dividend of 10% in that very first year, a record in the annals of sugar industry. It was a trendsetter in mobilising surplus cane during its infancy stage from neighbouring sugar mills and extending crushing season to well above industry average. Its capacity was expanded to 2500 TCD in 1994.

The Erode sugar mill has successfully implemented an innovative Lift Irrigation Scheme by bringing in dry lands under cane cultivation, utilizing the effluent discharge of the neighbouring paper mill. This has helped secure multitudinal benefits – providing a dependable and perennial source of irrigation to farmers in the neighbourhood, increase of land value manifold in the region, transforming the livelihood of local rural population, resolving the raw material needs of sugar and paper mills and addressing ecological concerns in effluent discharge.

Right at its inception, Ponni was structured on the concept of total diversion of bagasse for paper. Accordingly it installed a coal fired boiler and later added a multi fuel boiler in place of conventional bagasse fired boilers. It has a bagasse tie up arrangement with Seshasayee Paper and Boards Ltd for a mutually beneficial and rewarding long term relationship.

Ponni is an efficient and quality producer of sugar, catering to both domestic and international markets. It is a venerable partner for villagers growing sugarcane in its neighbourhood. It enjoys cordial relationship with employees. It firmly believes in transparent and fair dealings with all its stakeholders by following sound corporate governance norms both in letter and spirit.

Other group companies:

• Seshasayee Paper and Boards Limited
• High Energy Batteries (India) Limited
• SPB Projects and Consultancy Limited
• Esvin Advanced Technologies Limited

Business area of the company:

• The company is engaged in the manufacturing of sugar and its by products. It manufactures cane sugar, cane molasses and bagasse.

Major events:

• 26-12-1996 - The company incorporated under the name SPB Sugars and Chemicals Limited 
• 25-01-2000 - Name of the company changed to Ponni Sugars (Erode) Limited 
• 10-09-2001 - Demerger Scheme for the transfer of Erode Undertaking of Ponni Sugars and Chemicals Ltd established in 1984 to the company effective 01.04.1999. Sanctioned by High Court of Madras.
• 18-10-2001 - Completion date of Demerger Scheme which comes into effect from 01.04.1999. 

Achievements/ recognition:

• ISO 9001:2000 for quality Management System Standard
• ISO 14001:2004 Environmental Management System Standard