Sugar arm of India Cements buys stake in Ponni Sugars

 Sourcr:Financial chronicle /Sanjay Vijay Kumar Mar 21 2010

Sugar arm of India Cements buys stake in Ponni Sugars
Coromandel Sugars, a unit of India Cements (ICL)
has bought one lakh shares or
1.17 per cent stake in Ponni Sugars (Erode) for
about Rs 1.04 crore via an open market transaction on Friday.

As per the bulk deal data on the National Stock Exchange,
Venbro Investments and Financial Services, an existing shareholder in
Ponni Sugars has sold 1 lakh shares at Rs 103.97 a piece.
After the sale, its stake comes down to below 1 per cent from 1.80 per cent
as of December 2009.

The move comes at a time when India Cements is planning to set
up two 50 mega watt (mw) captive power plants in Tamil Nadu and
Andhra Pradesh.

On the other hand, Ponni Sugars is investing Rs 50 crore in
a 20mw cogeneration unit at its sugar unit in Erode and the
facility would be commissioned in September 2011.
 
The company expects to sell surplus power of about 12-16mw
from the plant. “Despite the lower crushing during the year under review,
the profitability of the company has improved significantly on account
of higher price realisation for all the products including molasses,
and increase in power export,” India Cements said in its 2009 annual report.

When asked about the transaction, N Raman-athan,
managing director of Ponni Sugars said he was not aware about it.
“It might be strategic in nature,” he added.





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