Indian group prospects sugar sector in Brazil
Valor Econômico
The company Shree Renuka Sugars, one of the largest sugar refiners of India, wants to make investments in sugar plants in Brazil and it is also looking for partnerships for the purchase of the product in the country. Valor discovered the company contracted Morgan Stanley to assist it in those operations in Brazil.
The company has US$ 100 million, raised in the market, for the purchase of assets in Brazil and to finance long-term contracts for the purchase of sugar. Two weeks ago, executive Narendra Murkumbi, vice-president of the group, met with the main sugar and alcohol companies of the country, among which Copersucar, Cosan, Moema and Açúcar Guarani, controlled by the French group Tereos, besides some trading companies.
The group wants to originate sugar from Brazil to take it to India, which that registers strong fall in production. "They are interested in joining a sugar plant in Brazil in order to guarantee the product", affirmed a source who met with the group. The intention of the company is to sign long-term contracts for the purchase of the Brazilian sugar.
Getting closer to Brazilian plants is strategic for the Indian companies at this moment. First, because India will register, for the second consecutive harvest, a strong decrease of its production of sugarcane due to the scarcity of rain in the main planting regions. And also because the country is interested in producing fuel alcohol.
At the beginning of this year, another Indian company, Bajaj Hindusthan, informed it was interested in investing in Brazil. On an interview in February to Valor, the CEO of the group, Rakesh Bhartia, affirmed the business decision would be taken after the global financial crisis.