Uttam Sugar Mills (USML) was promoted by Adlakha family. The company started its sugar manufacturing operations in January 2001 by setting up a 2,500 tonnes crushed per day (tcd) sugar plant at Libberheri in Uttaranchal, along with a co-generation facility of 6 mw of power, which was increased to 6,250 tcd and co-generation capacity to 16 mw. The company completed its first expansion drive in 2005 after it commissioned two plants at Barkatpur with a capacity of 3,500 tcd and 10 mw of power each. The company is among the few sugar companies that produces sugar through the defeco remelt phospho flotation process (DRP). Post expansion, the company will become one of the top ten sugar companies in the country, with a cane crushing capacity of 22,750 tcd and power generation capacity of 81 mw. It has already received approval from the ministry of commerce and industry to set up a distillery to produce industrial alcohol with a capacity of 22,500 kiloliters per annum at its Barkatpur facility.
Uttam Sugar is eligible for rebates from the Uttar Pradesh government under its sugar industry promotion policy. The concession is valid for five years. The Libberheri unit is also eligible for capital subsidy at 15% with maximum ceiling of Rs 30 lakh and central transport subsidy till 2007. The ministry of consumer affairs has exempted levy on 440,000 quintals of sugar production till sugar season 2007-08. The company has a de-risked business model as it produces sugar from sugarcane as well as raw sugar. Sugar production through refinery reduces its dependency on sugarcane. It has obtained a license for producing ethanol and extra-neutral alcohol. It also plans to sell surplus power generated to the state electricity board. The company came out with an IPO in March 2006 of 4,000,000 equity shares of Rs 10 face value at an issue price of Rs 340, through the book building route to fund its second expansion programme. Under the plan, the company would set up two green-field sugar mills one in Khaikeri in Uttar Pradesh with a capacity of 4,500 tcd and co-generation capacity of 15 mw and the other in Shermau, also in Uttar Pradesh, with a capacity of 5,000 tcd and power plant of 30 mw.
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