K.M. Sugar Mills Ltd.

K M Sugar Mills Ltd. (KMSML) was originally formed as a partnership firm in 1950, known as Kamlapat Motilal at Kanpur; the founder partners were Singhanias and Jhunjhunwalas and they had set up a small sugar milling plant at Kanpur in the year 1942. The mill experienced acute shortage of cane and consequently the plant was shifted to the present site at village Masodha, P.O Motinagar, Dist. Faizabad between 1949 and 1950.

During the year 1971 the firm was converted into Private Limited Company known as K. M. Sugar Mills (Pvt.) Ltd., and got registered with the Registrar of Companies, Uttar Pradesh, Kanpur. The company became a deemed public company in the year 1974 in terms of provisions 43A of the Companies Act. The company was converted back to a Private Limited Company under section 43A (2A) of the Companies Act. in the year 2002. The company was again converted into a public limited company with effect from April 20, 2005

At the time of the conversion of the firm into a Private Limited Company in 1971, L. K. Jhunjhunwala joined as Managing Director. During the year 1979, Singhanias transferred their stake in the company to Jhunjhunwalas.

The company expanded the sugar cane crushing capacity from 1800 TCD to 2500 TCD in the year 1980 and crushing capacities were increased from 2500 TCD to 3500 TCD in the year 2000 and further to 4500 TCD in the year 2002. The company is now planning to increase its capacity upto 6500 TCD.

The company started a gas division for manufacturing of Industrial Oxygen Gas and Liquid Nitrogen in the year 1988 and the gas division was expanded to manufacture Dissolved Acetylene Gas in the year 2000. The technology of the gas division became obsolete over a period of time and management decided to close down this division in the year 2005.

The distillery division of company was set up in the year 1995 to manufacture Rectified Spirit (45 KLPD) and Extra Neutral Alcohol (20 KLPD). In the year 2003 the division started production of ethanol (30KLPD) and in the year 2004 the Extra Neutral Alcohol plant was modified to produce ethanal and thereby increasing the total ethanol production capacity to 50 KLPD.

The company started production of Bio-Fertilizer using the byproduct of the sugar and distillery division i.e. press mud and spent wash in the year 2000.The company has also received the ISO 9001:2000 certification in 2003 for manufacture of white sugar.

The present management of KMSM is vested with the board of directors comprising Mr. L. K. Jhunjhunwala as the chairman, Mr. Aditya Jhunjhunwala as Managing Director and Mr. Sanjay Jhunjhunwala as Jt. Managing Director and other directors as mentioned under the heading ‘Management’.

P.C. Jhunjhunwala was one of the promoters of the company. He shifted his base in early eighty’s to Mumbai to concentrate on his other business interests. Though he continued to be on the board as Non Executive Director, he did not take active interest in the business of the company due to his other business interests.

Product range of the company includes:

Sugar Unit

White Plantation Sugar: The company has sugar manufacturing facility in Faizabad district of Uttar Pradesh. The present capacity of the plant is 4500 TCD. The company manufactures and sells three grades of sugar viz. L 31, M 31 & S 31, made from white plantation sugarcane.They are in the process of the increasing the crushing capacities from 4500 TCD to 6500 TCD.The company manufactures White Crystal Sugar which is used for human consumption and in the industries like food and bevarage, soft drinks etc.

Refining of raw sugar: Apart from manufacturing sugar from sugar cane, the company has also set up sugar refining facilities. The company imported 10,000 MT of duty free raw sugar and converted it into white crystal sugar during the period January 2005 to April 2005. The company does not envisage any problem in meeting its export obligation.

Distillery Unit - KMSML has its own distillery unit of capacity 45 KLPD and manufactures Rectified Spirit, Ethanol and Extra Neutral Alcohol (ENA) at its facility at Motinagar, Faizabad. Out of total production of rectified spirit 85% is grade-I quality and 15% is Grade-II.

Bio Compost Unit

The Bio Compost unit manufactures bio fertilizer which is marketed in the name of ‘Moti Super’. The Bio Fertiliser is manufactured by utilizing the by-product of sugar unit, i.e. Press Mud and the  by-product of Distillery division, i.e. spent wash along with culture.The Bio Fertiliser is manufactured in their own plant with a process called ‘Triochem’ process, which takes around 45 days for converting press mud into bio-compost.

Ethanol- Ethanol is used for mixing in petrol. Presently in India 5% ethnol is allowed for mixing with petrol. Fuel Grade Ethanol Plant at Ahmednagar, Maharashtra.The company also proposes to set up a 60 KLPD Fuel Grade Ethanol plant in Ahmednagar, District, Maharashtra, at a total cost of Rs. 500 lacs.

Achievements/ recognition:

The company has also received the ISO 9001:2000 certification in 2003 for manufacture of white sugar.