Coromandel Sugars (CSL), the sugar manufacturing entity promoted by India Cements (ICL), is all set for a sale of its assets to Sri Chamundeswari Sugars (SCSL), part of Coimbatore-based Sakthi Group.
Both SCSL and CSL have their sugar plants in the Mandya district in Karnataka, and both sides are believed to have held talks to finalise the deal, businessline has learnt. Both parties have chosen to structure the deal in the form of transfer of assets of CSL (including the sugar plant and others) to SCSL, rather than takeover of CSL as an entity. “SCSL may initially run the CSL plant on lease basis for a few months and then undertake transfer of assets,” sources said.
Businessline could not confirm the valuation of the assets but industry trackers say that the value of CSL’s assets, given its capacity, could be in the range of ₹160-180 crore. Currently, 49.99 per cent of CSL’s shareholding is held by Coromandel Electric Company and the remaining is held by ICL’s group company Sri Saradha Logistics. Interestingly, Coromandel Electric, was until recently, a subsidiary of ICL, but in March, ICL sold their entire stake in CECL to Chennai-based Adam & Coal Resources Private Ltd.
