Company History

Bajaj Hindusthan Sugar Ltd

Early Years

Bajaj Hindusthan Sugar Limited (BHSL) was established on 24th November 1931, as 'Hindusthan Sugar Mills Limited.' Founded by the late Shri Jamnalal Bajaj, a respected businessman, freedom fighter, and close confidant of Mahatma Gandhi, the company's inception aimed to address a critical national mission-providing momentum to the industry, given that there were fewer than 30 sugar mills in the country at that time-and advancing inclusive growth.

The chosen site for the first plant was in Gola Gokaran Nath in the Lakhimpur Kheri district in the Terai region of present-day Uttar Pradesh (UP). Positioned in an area abundant with sugarcane plantations, the original capacity of the plant was 400 tonnes of cane crushed per day (TCD), which eventually increased to its current 13,000 TCD.

The distillery unit of the plant began production in 1944. During World War II, the distillery primarily produced power alcohol, a commodity in short supply at the time. Notably, the unit became the first in the country to supply alcohol-mixed petrol to the army.

In 1967, a new company, Sharda Sugar & Industries Limited, emerged as a subsidiary of Hindusthan Sugar Mills Limited. Under this subsidiary, a sugar plant with a cane crushing capacity of 1,400 TCD was established in 1972 at Palia Kalan, a major cane-supplying centre located 70 kilometres north of the Gola Gokaran Nath unit. The Palia Kalan unit's capacity was gradually increased to its current 11,000 TCD.

In High Gear

In 1988, Hindusthan Sugar Mills Limited underwent a name change, becoming Bajaj Hindusthan Sugar Limited (BHSL). Two years later, Sharda Sugar & Industries Limited was amalgamated with the company.

During the 2000s, BHSL initiated an ambitious greenfield expansion from 2003 to 2007, establishing eight plants across the state. This rapid expansion, starting with a plant at Kinauni near Meerut, was notably completed in just 7 months, contrasting with the industry norm of 18-24 months. The total cane crushing capacity of the company surged to 96,000 TCD.

In 2005, BHSL acquired Pratappur Sugar and Industries Limited (PSIL) in UP's Deoria district. Operating since 1903, it was Asia's oldest plant with a crushing capacity of 3,200 TCD. Post-acquisition, its capacity doubled to 6,000 TCD within a year.

PSIL was subsequently renamed Bajaj Hindusthan Sugar and Industries Limited (BHSIL) and made a subsidiary of BHSL. This acquisition provided BHSL with a strategic foothold in the sugar-deficient region of Eastern UP and reaffirmed the consolidation that took place in the sugar industry.

By the end of 2007, the expansion drive not only enhanced BHSL's overall cane crushing capacity but also positioned the company as India's largest ethanol producer, generating 480 kiloliters per day (KLD).

Unstoppable Momentum

While enhancing the capacity of its existing sugar plant at Pratappur, the company concurrently established three additional sugar units in virgin, cane-rich areas of East UP at Rudauli (district: Basti), Kundarkhi (district: Gonda), and Utraula (district: Balrampur). This elevated BHSIL's total crushing capacity to 40,000 TCD.

The commissioning of three Bagasse-based power co-generation plants at Kundarkhi, Rudauli, and Utraula contributed to BHSIL's aggregate power generation capacity of 95.8 MW. Coupled with the power generation capacity of 325 MW from BHSL, the company's total generation capacity stands at 420.8 MW, surpassing its energy needs. Notably, the surplus 90 MW of energy is supplied to the UP state grid.

In December 2010, the amalgamation of BHSIL with BHSL was completed.

BHSL's growth initiative was strategically focused on achieving global manufacturing scale and cost competitiveness. Simultaneously, it created significant developmental opportunities in UP, a state eager for infrastructural growth, youth employment, and overall socioeconomic development in rural communities.

Today, BHSL holds a unique position, towering over local peers and ranking among the world's best in planning and processes. With the company impacting over 5 lakh farmers in UP, it directly contributes to the rural economy, bringing positive change to countless lives in UP and beyond across India.

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