Triveni, the diversified conglomerate with businesses in sugar, power transmission and distilleries, is planning a capacity expansion of its existing plants in the next two years after its board’s recent decision to allocate Rs 85 crore of capex specifically for the sugar business.
The company plans to use the funds for expanding the capacity of the existing sugar unit at Sabitgarh in Uttar Pradesh by 2,000 tonnes of cane per day (TCD). The expansion will elevate the unit’s capacity from 7,000 TCD to 9,000 TCD.
“This will augment the total crushing capacity of the company to an impressive 63,000 TCD,” said Tarun Sawhney, vice chairman and managing director of Triveni Engineering & Industries.
Given that six out of seven of Triveni’s factories have excellent irrigation facilities and water table levels, the company is confident of handling any inclement weather or El Nino effect over the next couple of months.
Sugar exports contributed significantly to the profitability of the company with exports touching 190,337 tonnes during FY23 out of the total export quota of 204,868 tonnes.
In the distillery segment, Triveni is also planning on enhancing its production capabilities significantly. It plans to commission two new distilleries by the end of the next fiscal year.
“While these distilleries may not contribute to the revenue numbers for fiscal 2024, the expected increase in activity and capacity is exciting,” said Sawhney, adding that a new distillery is expected at Rani Nangal and capacity doubling at the Sabitgarh unit.
For the engineering front, the company is directing its capex towards power transmission with an intent to increase the capacity of this business segment by 50 to 70%, depending on the products.