The debt-laden Simbhaoli Group is moving towards the sale of its three sugar mills in Uttar Pradesh, with the bidding process expected to take place on November 5, 2026. The proposed sale covers the Simbhaoli and Brijnathpur sugar mills in Hapur district and the Chilwaria sugar mill in Bahraich district. The development marks a crucial turning point for the group, whose Simbhaoli sugar mill has been associated with the region’s sugar industry since 1933.
According to management sources, the sale process has gathered momentum following court approval. The Interim Resolution Professional (IRP) has issued Form G, inviting expressions of interest from prospective buyers. So far, representatives of around 25 major companies and industrial groups have reportedly visited the three facilities to assess their potential and explore acquisition opportunities.
The Uttar Pradesh government has also asked companies interested in acquiring the mills to submit a Standard Operating Procedure (SOP) outlining how they plan to operate the facilities and ensure continuity of crushing operations. This requirement is particularly important as the future of the three mills is closely linked to the livelihoods of thousands of employees and sugarcane farmers in the surrounding areas.
The proposed sale is not merely a change in ownership but also a critical decision for the regional sugar industry. Farmers are concerned about the timely payment of sugarcane dues, the availability of nearby procurement centres and the regular operation of the mills. Ensuring uninterrupted crushing operations and restoring confidence among cane growers will be among the key responsibilities of the new owners.
The existing management has reportedly expressed its inability to continue operating the mills under the prevailing circumstances. It has indicated that despite making better sugarcane payments than in previous years, the reduction in procurement centres has affected cane availability and made mill operations increasingly difficult. The management has also stated that it is presenting its position before the court and the state government.
The November 5 bidding process is expected to provide greater clarity on the future ownership and operational plans of the three units. If the sale is completed promptly and the successful bidders are prepared to restart operations, the mills could potentially participate in the ongoing crushing season. However, any delay in the acquisition or operational preparations could prolong uncertainty for farmers and workers.
For Uttar Pradesh’s sugar sector, the outcome will be significant, as the priority will be to restore operations, protect farmers’ interests and ensure timely payment of sugarcane dues. The future of all three Simbhaoli Group mills will now depend on the acquisition process and the operational commitments made by their prospective buyers.
