Simbhaoli forms JV with Singapore firm
In an effort to expand its power generation business, sugar refiner Simbhaoli Sugars (SSL) has entered into a joint venture with Singapore-based Sindicatum that operates clean energy projects.
"The joint venture will enhance total power generation capacity of our plants from 60 MW to 115 MW," company CMD Gurmit Singh Mann said.
The cost of power capacity expansion is expected to be Rs 3.3 billion, which will be raised through debt funding, he said. As part of its strategy, SSL would sell 49 % stake in its subsidiary Simbhaoli Power Ltd to a group company of Sindicatum.
Once the sale is complete, Simbhaoli Power would become the joint venture company for carrying out power generation business. Prior to stake sale, SSL would transfer all of its existing power assets to SPL at a value of Rs1.96 billion.