Mumbai: Singapore-based agri-business group Wilmar International Ltd is set to pick up at least a 25% stake in Murkumbi family-promoted Shree Renuka Sugars Ltd—India’s largest producer of raw sugar, according to two persons close to the development. Renuka Sugars, that operates 11 integrated sugar mills globally, four in Brazil and seven in India, is likely to issue fresh shares to Wilmar International at 35-45 a share.

An announcement of the deal is expected shortly.

Renuka Sugars was considering various options to pare its debt of over 8,000 crore, which built up following its two overseas acquisitions. In 2009, Renuka acquired Distillery Valley Ivai SA (Renuka Vale do Ivai) for $240 million. In 2010, it bought 59.4% stake in Equipav SA (Renuka do Brasil) for $250 mn.

Narendra M. Murkumbi, vice chairman and managing director, said “nothing is imminent" when asked about a potential deal with Wilmar International. He did not disclose details about discussions regarding a possible stake sale. Mint could not immediately contact Wilmar International for a comment.

According to its website, Wilmar International’s business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, speciality fats, oleo-chemicals, bio-diesel and fertilizers manufacturing and grains processing.

It covers the entire value chain of the agricultural commodity processing business, from origination and processing to branding, merchandising and distribution of a wide range of agricultural products.

Wilmar International has over 450 manufacturing plants and an extensive distribution network in China, India, Indonesia and about 50 other countries.

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