Shree Renuka Sugars, (head quartered in Belgaum) which is India’s biggest sugar refiner is negotiating to acquire Balrampur Chini Mills, just about one-and-a-half month after Bajaj Hindusthan failed to strike a similar deal.
If a deal eventually materializes, Shree Renuka will buy the Kolkata-based Saraogi family’s 36.5 per cent stake in Balrampur and will subsequently launch an open offer to buy 20 per cent from minority shareholders of Balrampur as required by rules governing takeovers in India.
If the transaction takes place, the Shree Renuka-Balrampur combine will have a capacity equal to the country’ largest sugarmaker, Bajaj Hindusthan.
Balrampur is the second largest producer of the sweetener. It has a capacity to crush 73,500 tonnes per day and posted net sales of Rs 1,753 crore for the year ended September 2008. Shree Renuka crushes 60,000 tonnes a day.