Our intention is to increase our current aggregate sugarcane crushing capacity of 25,250 TCD further. In order to achieve this, we are taking a number of steps including modernisation and expansion of our Khatauli sugar mill to a crushing capacity of 16,000 TCD from the existing 11,750 TCD & expansion of our Deoband Unit from existing 10,000 TCD to 14,000 TCD.

Further, we have acquired the land and have received government approvals for a new sugar mill with a crushing capacity of 7,000 TCD at Sabitgarh, Distt. Bulandshahar in Western Uttar Pradesh. The construction activity is now in full swing at Sabitgarh & targeted to be completed by Dec. 2005. We estimate this site as one of the best sites for a sugar mill in India as large parts of its cultivable cane area are canal irrigated thus reducing the dependence on monsoon and bore-wells. In addition, the drainage in this area is also good as there are no low-lying areas (areas in which water stagnates, which decreases the yield of sugar from the sugarcane grown in such areas).

We have started the process of sugarcane development in the cane area of this sugar mill and high recovery and early maturing varieties of sugarcane.

We are also exploring sites for setting up of two or more sugar mills of similar crushing capacity as the one in Sabitgarh by 2007.

Our continued growth will depend, among other things, on our ability to secure significant amounts of financing, to manage our expansion process, to restructure our units when required, to make timely capital investments, to manage strategic acquisitions or divestments, to control input costs and to maintain sufficient operational and financial controls.