Shree Renuka Seeks Brazilian Sugar Mills for Supplies

12 Oct 2009 Evaluate

Shree Renuka Sugars Ltd., India’s biggest refiner, plans to acquire rivals in Brazil to secure supplies as a global deficit drives prices upwards. The company plans to bid for Equipav SA Acucar e Alcool, the sugar and alcohol assets of Brazil’s Equipav Group, and is in exclusive talks with several other Brazilian producers for acquisitions.

 

Assets in Brazil will protect Shree Renuka from the supply swings in India. Whether shortage or no shortage in India, it will be assured of supplies with which it can process and sell to other Asian nations. The acquisitions may help Shree Renuka secure half of its annual raw-sugar requirement of 2 million tons by 2011. India will remain the largest buyer with a deficit of 8 million tons in 2009-10. More than any other Indian producer, Shree Renuka needs to secure supplies of raw sugar as it’s primarily a refiner. Shree Renuka will use part of $105 million raised in June by selling shares to large investors and its own funds to pay for the purchases. The company may also borrow if needed.

 

Cosan SA Industria e Comercio, Bunge Ltd. and Sao Martinho SA are among companies in talks about possible bids for assets of Equipav SA Acucar e Alcool. The sugar and alcohol producer should receive bids by Oct. 14.

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Shree Renuka Sugar Share Price

39.83 -1.19 (-2.90%)
20-Dec-2024 16:59 View Price Chart
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Company Name CMP
Shree Renuka Sugar 39.83
Bajaj Hindusthan Sug 31.14
Balrampur Chini Mill 537.05
Triveni Engg. & Inds 453.75
Dalmia Bharat Sugar 379.55
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