New Delhi: Bajaj Hindusthan (BHL), the Shishir Bajaj-owned, will be entering into the infrastructure sector in a bid to diversify and secure the company from the cyclical nature of the sugar business. Of late, BHL has bid for two phases of the Uttar Pradesh government''s 1,047-km Ganga Expressway Project in association with DS Construction and the Apollo Group. The consortium has been shortlisted for the two phases and the financial bid is scheduled to open on January 13. The two phases are Greater Noida to Fatehgarh, including the Farrukhabad Link (253 km), involving an investment of Rs 7,631 crore, and Fatehgarh to Dalmau (Rae Bareli), including the Lucknow link (305 km), at an investment of Rs 8,012 crore.
On December 27, BHL informed the Bombay Stock Exchange that its board had approved the company''s participation in the project. The company has also diversified into the production of particle-board and medium-density fibre-board from bagasse, a byproduct of sugar. It has also ventured into value-added products such as ethanol and power. Sugar, the company''s main business, is highly cyclical in nature and the company has posted huge losses in the last few quarters due to a downturn in the sugar sector. The country saw a record sugar production of 28.4 million tonnes last year, which is expected to be higher this year. Consequently, sugar prices have crashed by 30-35 per cent in the last one year and are expected to remain under pressure in the near future.
On December 27, BHL informed the Bombay Stock Exchange that its board had approved the company''s participation in the project. The company has also diversified into the production of particle-board and medium-density fibre-board from bagasse, a byproduct of sugar. It has also ventured into value-added products such as ethanol and power. Sugar, the company''s main business, is highly cyclical in nature and the company has posted huge losses in the last few quarters due to a downturn in the sugar sector. The country saw a record sugar production of 28.4 million tonnes last year, which is expected to be higher this year. Consequently, sugar prices have crashed by 30-35 per cent in the last one year and are expected to remain under pressure in the near future.
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