Chennai, January 23, 2025 – Kothari Sugars and Chemicals Limited (NSE: KOTARISUG) has announced the commencement of sugarcane crushing operations at its Kattur unit for the 2024-25 sugar season while opting to suspend operations at its Sathamangalam unit due to inadequate sugarcane availability.
Key Highlights:
- Kattur Sugar Unit commenced crushing operations on January 23, 2025.
- Sathamangalam Sugar Unit will remain non-operational for the season due to low sugarcane supply in the company's command area.
- The Sathamangalam unit contributed ₹200.41 crore (39%) to the company's turnover for the financial year ending March 31, 2024.
Operational Impact & Industry Context
The company's decision to keep one of its two sugar units idle highlights ongoing supply chain constraints in the Indian sugar industry, which has been affected by weather fluctuations and agricultural challenges. However, Kothari Sugars remains operational at its Kattur facility, ensuring continued production despite regional supply limitations.This development comes amid volatile sugar market conditions, where global production estimates and domestic government policies on ethanol blending and sugar exports continue to shape industry dynamics.
Regulatory Compliance
The announcement was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for investors and stakeholders.Investors will closely monitor the financial impact of the Sathamangalam unit's non-operation, domestic sugar prices, and industry policy decisions to gauge Kothari Sugars' performance in the ongoing fiscal year.