DCM Shriram Consolidated Limited - II

completed

DCM Shriram Consolidated Limited (DSCL, or the company) an existing IFC client is a diversified agribusiness and chemical company with four primary businesses – sugar, urea, polyvinyl chloride (PVC), and caustic soda/ chlorine. In addition, the company has other business lines to complement its main products, which include wholesale and retail marketing of agricultural inputs (seeds, non-urea fertilizers, pesticides), value-added PVC products (laminated doors, windows) and chlorochemicals. The company currently runs a successful sugar operation in Uttar Pradesh (UP) with a total crushing capacity of 14,000 tcd (tons crushing per day) in 2 sugar mills. The company is planning an investment program in its sugar operations, which includes: - expansion of Ajbapur sugar unit from 7,500 tcd to 10,500 tcd; - setting up of two greenfield sugar mills in Hariyawan and Loni in Distt. Hardoi, UP of 8000 tcd each; establishment of 0.06 million hectares of sugar cane production through 150,000 smallholder producers and - power cogeneration capacity of 24 MW at Hariyawan (12 MW) and Loni (12 MW). With this expansion, the sugar crushing capacity would increase from 14,000 tcd to 33,000 tcd and captive power co-generation capacity would increase from 46.5 MW to 82.5 MW. The sugar expansion is expected to get commissioned by October 2006 and power co-gen by October 2007. The proposed IFC financing will partly fund the above projects.