Sweet! India sugar firm

May 13, 2013 | 14:40

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Indian sugar-maker KCP Group, encouraged by the success of its two sugar plants in central Phu Yen province, plans to invest additional $100 million in Vietnam.

The KCP group aims to build on the successful operation in Phu Yen province

K.V.S.R Subbaiah, general director of KCP Vietnam Industries Limited – a subsidiary of KCP Group in Vietnam – said that the group would spend $22 million building an ethanol plant, $33 million building a biogas-power plant and $45 million expanding capacity of Dong Xuan and Son Hoa sugar plants in Phu Yen.

“The investment plan will be implemented within next five years,” said Subbaiah.

KCP Group initially built a sugar plant in Thua Thien Hue province, but it suffered losses due to the shortage of raw material. In 2000, the company relocated to Phu Yen province where local farmers could provide enough cane for its sugar production.

“We succeeded here and I see the potential growth is still very strong,” said Subbaiah, adding that just four years after investing in Phu Yen, the company started gaining profit and had never suffered loss so far.

KCP Vietnam, which supplies sugar for beverage companies like Coca Cola and PepsiCo in Vietnam, last year reached revenue of $80 million and Subbaiah believed the market was growing strongly as its clients are expanding business in Vietnam.

With a $45 million additional investment, KCP Vietnam will double capacity of Son Hoa sugar plant to 10,000 tonnes of canes per day, and Dong Xuan sugar plant to 5,000 tonnes of canes per day. Furthermore, it will support farmers to enhance cultivating capacity from 55 tonnes of canes per one hectare to 70 tonnes of canes, that will ensure the material supply for its production.

By By Ngoc Linh

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