Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Shree Renuka Sugars said to have fired 900 workers at its Brazil mills
BackBack

Shree Renuka Sugars said to have fired 900 workers at its Brazil mills

Renuka do Brasil has fired around 900 people from its two cane mills in Brazil and returned to owners most of the land it used to lease to plant sugarcane

Renuka do Brasil is struggling to keep operations after a failed attempt to auction off one of its sugar mills in September. Photo: BloombergPremium
Renuka do Brasil is struggling to keep operations after a failed attempt to auction off one of its sugar mills in September. Photo: Bloomberg

Ribeirao Preto: Renuka do Brasil, a subsidiary of India’s sugar maker Shree Renuka Sugars Ltd, has fired around 900 people from its two cane mills in Brazil and returned to owners most of the land it used to lease to plant cane, three people close to the situation told Reuters on Tuesday.

The people, who asked to not be named because they are not authorized to discuss the issue, said the company is struggling to keep operations after a failed attempt to auction off one of its mills in September. Renuka do Brasil, which filed for bankruptcy protection in 2015, declined to comment.

“They are speeding up land returns to owners, because they can’t pay the lease," said one of the people, adding the company cut use of land from third parties from 100,000 hectares to 30,000 hectares currently.

Shree Renuka Sugars entered Brazil’s sugar sector between 2009 and 2010, buying controlling stakes in two companies which owned two mills each. The two Brazilian subsidiaries were called Renuka Vale do Ivai, operating in the Paraná state, and Renuka do Brasil, in Sao Paulo state.

The two companies ran into financial difficulties after years of low sugar and ethanol prices in Brazil, as did many other firms. Almost 80 mills closed since then.

Renuka do Brasil tried to sell one of the two mills it operates in a judicial auction in September, but the move was blocked by an injunction from Brazil’s development bank BNDES, a creditor involved in the process.

A second source said Renuka do Brasil’s two mills will crush only around 4.5 million tonnes of cane in the current crop, less than half their capacity. Reuters

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 18 Oct 2017, 12:09 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie