Bajaj Hindusthan Sugar Ltd.

Bajaj Hindusthan (BHL) was incorporated on November 23, 1931 under the name --The Hindusthan Sugar Mills -- on the initiative of Jamnalal Bajaj - a businessman, confidante, disciple and adopted son of Mahatma Gandhi. Bajaj Hindusthan (BHL), a part of the Bajaj Group, is India’s Number One sugar and ethanol manufacturing company, headquartered at Mumbai (Maharashtra), India.

The Company has fourteen sugar plants, which are all located in the northern Indian state of Uttar Pradesh (UP): Golagokarannath, Palia Kalan and Khambarkhera (district Lakhimpur Kheri), Barkhera (district Pilibhit), Kinauni (district Meerut), Gangnauli (district Saharanpur), Thanabhavan and Budhana (district Muzaffarnagar), Bilai (district Bijnore), Maqsoodapur (district Shahjahanpur), Pratappur (district Deoria), Rudauli (district Basti), Kundarkhi (district Gonda) and Utraula (district Balrampur). These plants have aggregate sugarcane crushing capacity of 136,000 tcd (tonnes crushed per day) and a distillery capacity to produce 800,000 liters of alcohol per day.

BHL is India’s largest ethanol producer. It is the pioneer of India’s fuel ethanol programme. It is currently producing 38 million litres of ethanol in a year. In anticipation of emerging market demand, the Company has increased its ethanol manufacturing capacity to nearly 218 million litres per year.

The company generates 430 MW of power from the bagasse produced in its sugar mills. After meeting its own energy needs, BHL has a surplus of 105 MW. The Company has already begun to supply a significant part of this surplus power to the UP state grid. BHL has now embarked upon the expansion of its power generation capacity by 450 MW through the setting up of new coal based power plants of 90 MW each in the vicinity of 5 of its existing sugar units. These new projects are expected to be completed within a period of nine months at an aggregate project cost of around Rs. 23 billion.

Besides this, through a Consortium, the company, in a major diversification move, has also embarked on developing two mega thermal power projects in UP, each of which will produce 1,980 megawatts of power, ready for commissioning in around 5 years.

BHL’s wholly owned subsidiary, Bajaj Eco-tec Products Limited (BEPL), produces environment-friendly Medium Density Fibre Boards (MDF) and Particle Boards (PB), both from its bagasse waste. Both MDF and PB are invaluable substitutes for wood in construction and furnishing. The manufacturing of MDF and PB has been a trail-blazing venture in India. It will protect and preserve India’s forests from commercial exploitation by the construction and furniture industries. A 50,000 cubic metre MDF plant saves one lakh mature trees from being cut down in a year.

BEPL is among the very few units in the world to manufacture MDF and PB that is completely wood-free. Its three Units, put together, turns out 210,000 cubic metres of MDF and Particle Boards in a year. This will prevent the felling of an estimated 420,000 fully matured trees annually.

Milestones:

1981-1990

• Company applies for a license to increase capacity from 4,800 TCD to 10,000 TCD
• Complete decontrol of cement effective March 1, 1989
• Sharda Sugar & Ind. Ltd. receives LOI to expand its capacity from 1,400 TCD to 5,000 TCD.
• The company changes its name to Bajaj Hindustan.
• Capacity of cement plant increased from 4 to 6 million tons per annum
• Bonus shares issued of Rs. 1.12 million in the ratio of 4:1
• Expansion of Gola plant from 3,600 to 4,800 tons completed
• Golden jubilee year
• Sharda Sugar & Ind. Ltd. amalgamated with Bajaj Hindustan. 

1991-2000

• LOI received to increase cane capacity to 10,000 MT per day for Gola unit
• Construction Board Ltd. amalgamated with Bajaj Hindustan.
• Palia capacity increased to 5,000 TCD
• The cement plant is sold to J K Udaipur Udyog for Rs 147.50 crore
• Board of directors decide to dispose of the cement unit.

2001 Onwards

• New 7,000 TCD plant near Meerut commenced operations in November 2004
• First unit to crush 20 million quintals of cane during the drought year 2002-03
• Achieved record profit of Rs. 283.51 million in FY 2003
• Turnover up by 25% (on annualised basis)
• Production up by 25%
• Crushing of sugar cane up by 26%
• GOI changes the free to levy sugar sale ratio from 70:30 to 85:15.