Shree Renuka Sugars Limited, a prominent player in the sugar industry has recently made a significant move to boost its presence in the sugar market by acquiring Anamika Sugar Mills Private Limited. This strategic acquisition, comprising 100% of Anamika’s equity shares, aligns with Shree Renuka Sugars Limited’s expansion plans and marks a significant milestone in their growth trajectory.
Anamika Sugar Mills Private Limited, established in 2010, specialises in sugar and sugar product manufacturing, processing, refining, distribution, marketing and trading. With a crushing capacity of around 4000 TCD (tons of cane per day), Anamika has a substantial presence in India’s sugar sector. In the past fiscal year, it reported a turnover of Rs 294.56 crore.
The acquisition’s objectives are multi-faceted. Firstly, it grants Shree Renuka Sugars Limited access to the lucrative Uttar Pradesh market one of India’s leading sugar-producing states. Anamika’s established sugarcane catchment area and experienced workforce will significantly reduce lead times for setting up operations in Uttar Pradesh, providing a competitive advantage.
This strategic move ensures that Anamika Sugar Mills will become a wholly-owned subsidiary of Shree Renuka Sugars Limited. The acquisition is valued at approximately Rs 235.5 crore for the acquisition of 100% equity shares and an additional Rs 110 crore for primary infusion to redeem preference shares. The completion of the acquisition is expected by or before October 15, 2023.
Today the scrip opened at Rs 55.44 and currently it is trading at Rs 55.28, up by 0.95%. It has a 52-week high of Rs 68.70 and a 52-week low of Rs 39.50. Over the past one month shares of the company have increased by 21.19% and in the past six months it has increased by 33.98%. Currently, company has a market capitalization of around Rs 11,800 crore.
Shree Renuka Sugars Limited manufactures and refines sugar, ethyl alcohol, ethanol, generation and sale of power. Company acquisition of Anamika Sugar Mills is a strategic move that not only reinforces its presence in the sugar industry but also expands its reach into key markets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.