DCM Shriram Consolidated Limited - II

completed

DCM Shriram Consolidated Limited (“DSCL” or the “Company”), headquartered in New Delhi, is a diversified agribusiness and chemical company with four primary businesses – sugar, urea, polyvinyl chloride (“PVC”) and caustic soda/ chlorine. In FY ending March 2005, the Company had consolidated revenue of $420 million and net income of $23 million. The Company currently runs two sugar mills in Uttar Pradesh (UP) State with a total crushing capacity of 14,000 tcd (tons crushing per day). The company is planning to expand its sugar operations through: - expansion of an existing sugar mill from 7,500 tcd to 10,500 tcd; - setting up of two greenfield sugar mills in UP with capacity of 8000 tcd each; and - captive power cogeneration capacity of 12 MW in each of the greenfield mills. The project is part of the company’s strategy to take advantage of the growth in India sugar market and strengthen its competitiveness through developing value-added business. Through the power co-generations sub-projects, the company expects to realize more value from bagasse and further improve its cost advantage.