Takeover of Sir Shadi Shamli Sugar mill by Triveni Engineering & Industries Ltd. may bring happier times to its farmers and other stakeholders
Noida, March 26, 2024: Triveni Engineering & Industries Ltd. is one of the largest integrated sugar producers in the country and a leading player in engineered-to-order high speed gears & gearboxes and water and wastewater management business.
Triveni Engineering & Industries Limited (“Company”) on March 11, 2024, announced acquisition of 25.43% equity stake in Sir Shadi Lal Enterprises Limited (“SSEL”). With an intent to acquire a majority stake in SSEL, the Company has also launched an open offer pursuant to the applicable SEBI (Substantial Acquisitions of Shares and Takeovers) Regulations, 2011 to acquire up to 26% voting share capital of SSEL. The acquisition is in line with the Company’s objective to expand its operations in the sugar and alcohol manufacturing businesses.
Dr. Ashok Kumar, Vice President, Khatauli Sugar Unit, Triveni Engineering & Industries, commented on the acquisition, stating, “We are aware of the ongoing losses at SSEL, and understand the hardships being faced by farmers in Shamli and empathize with them due to non-payment for their dues of ~ Rs. 215 crores pertaining to sugar season 2022-23. We will only be able to help the farmers in the Shamli region and improve the condition of the SSEL units after we have the majority ownership and management control over SSEL. Having acquired a 25.43% equity stake in SSEL, we are desirous of acquiring further equity stake held by the existing promoters of SSEL. We are currently a minority shareholder of SSEL, which constrains our ability to take any proactive measures for the benefit of farmers and the mill. Once we acquire substantial voting capital and control over SSEL, we will look to further expand the business and drive the next phase of SSEL.”
