bajaj hindusthan limited.docx

8/11/2019 Bajaj Hindusthan Limited.docx

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Bajaj Hindusthan Limited (BHL) was incorporated on 23rd November, 1931 under the

name - The Hindusthan Sugar Mills Limited on the initiative of Jamnalal Bajaj - a

businessman, confidante, disciple and adopted son of Mahatma Gandhi. He sought

Gandhiji's blessings in this new venture, which, apart from being a sound commercial

proposition would also meet a national need. Till then, there were barely thirty sugar

factories in the country.

The site selected for the first plant was at Golagokarannath, district Lakhimpur Kheri

in the Terai region of Uttar Pradesh (UP), an area rich in sugar cane. The original

capacity of the factory was 400 tons of cane crushed per day (tcd). Subsequently,

this capacity was increased in stages and is currently 13,000 tcd. The distillery Unit

at this plant commenced production during the end of World War II in 1944. In the

initial few years, the major output was in the form of power alcohol as an additive to

petrol, which was then in short supply. The unit was the first to supply alcohol-mixed

petrol to the army.

In 1967, a new Company - Sharda Sugar & Industries Limited - was established as a

subsidiary of Hindusthan Sugar Mills Limited. Under this new subsidiary, a sugar

plant with a cane crushing capacity of 1400 tcd was set up in 1972 at Palia Kalan, a

large cane supplying centre at a distance of about 70 kilometres from

Golagokarannath. The objective of this new Unit was primarily to help the cane

growers of the area supply their produce to the new location closer to their fields,

thereby cutting down on transportation costs. The capacity was subsequently

increased in stages to reach the present 11,000 tcd.

In the year 1988, The Hindusthan Sugar Mills Limited was renamed as Bajaj

Hindusthan Limited and shortly thereafter in 1990, Sharda Sugar & Industries

Limited was amalgamated with Bajaj Hindusthan Limited.

The Company embarked on an aggressive Greenfield expansion drive in 2003-

2007, starting with a plant at Kinauni, near Meerut (UP), which was completed in a

record time of just seven months as against the industry norm of 18-24 months. This

facility commenced commercial production in November 2004.

At the end of the expansion project in 2007, BHL had ten sugar manufacturinglocations across UP with a cane crushing capacity of 96,000 tcd and was also the

countrys largest ethanol producer with an output of 480 KL/ day.

In an acquisition move, the Company took over the Pratappur Sugar and Industries

Limited (PSIL), district Deoria, Eastern UP in December 2005. This Plant, in operation

since 1903, had a crushing capacity of 3,200 tcd, which was increased to 6,000 tcd

in the subsequent sugar season 2006-07.

PSIL was subsequently renamed Bajaj Hindusthan Sugar and Industries Limited

(BHSIL) and became a subsidiary of BHL. This acquisition provided BHL a strategic

foothold in the sugar-deficient region of Eastern UP and reaffirmed the consolidation


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that took place in the sugar industry.

BHSIL embarked upon significant new expansions. While the capacity of its existing

sugar plant at Pratappur was enhanced, three new sugar units were also set up in

virgin, cane-rich areas of East UP at Rudauli (district Basti), Kundarkhi (district

Gonda) and in Utraula (district Balrampur). BHSIL then, had a crushing capacity of

40,000 tcd and a distillery with the capacity to manufacture 160 kilo-litre per day of

ethanol. The total industrial alcohol/ ethanol capacity of the Company, including its

subsidiary, was 800 KL/ day.

With the commissioning of three bagasse-based power co-generation plants at

Kundarkhi, Rudauli and Utraula, BHSIL had an aggregate power generation capacity

of 95.8 MW. Combined with the power generation capacity of 325 MW from BHL, the

Companys total generation capacity is 420.8 MW. After meeting its own energy

needs, the Company has a surplus of 90 MW. It supplies a significant part of this

surplus power to the UP state grid.

In December 2010, BHSIL was amalgamated with BHL.

The Companys growth initiative has been led by a strategic focus of attaining global

scales of manufacturing and cost competitiveness. Such benchmarking provides BHL

advantages of cost and higher domestic market share where demand is expected to

outstrip supply for the next few years.

BHL is in a unique position. While its planning and processes are benchmarkedagainst global practices, its activities are directed at contributing to the Indian rural

economy at a local, grassroots level, primarily in the uplifting of the farmers. The

Company embarked on an expansion, the scales of which are unprecedented

worldwide, providing tremendous opportunities of employment, infrastructure and

community development and contributing to the growth of the rural economy of UP.


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