Bajaj Hindusthan Limited, is a Bajaj Group company engaged in the manufacture of sugar and molasses for production of industrial alcohol. Bajaj Hindusthan Ltd. (BHL), a part of the 'Bajaj Group', is India's Number One sugar and ethanol manufacturing company, headquartered at Mumbai (Maharashtra), India. The Company has ten sugar plants, which are all located in the northern Indian state of Uttar Pradesh (UP).

Products & Services—

Golagokarannath, Palia Kalan and Khambarkhera (district Lakhimpur Kheri), Barkhera (district Pilibhit), Kinauni (district Meerut), Gangnauli (district Saharanpur), Thanabhavan and Budhana (district Muzaffarnagar) and Bilai (district Bijnore) and a Unit that commenced operations this sugar season of 2007-08 at Maqsoodapur (district Shahjahanpur).These ten plants have an aggregate sugarcane crushing capacity of 96,000 tcd (tonnes crushed per day). BHL’s subsidiary, Bajaj Hindusthan Sugar and Industries Limited (BHSIL), has a 6,000 tcd sugar plant at Pratappur (district Deoria) in UP. BHSIL has, this sugar season, commenced sugarcane crushing operations at three more sugar plants : a 7,000 tcd plant in Rudauli (district Basti), a 15,000 tcd plant in Kundarkhi (district Gonda). a 12,000 tcd plant in Utraula (district Balrampur). Thus, BHSIL will have a crushing capacity of 40,000 tcd. The Bajaj Hindusthan Group as a whole will have an aggregate sugarcane crushing capacity of 136,000 tcd. The Group has a distiller
y capacity to produce 800,000 liters of Alcohol per day.

BHL is India’s largest ethanol producer. It is the pioneer of India’s fuel ethanol programme. BHL is currently producing 34.24 million litres of ethanol in a year. In anticipation of emerging market demand, the Company has increased its ethanol manufacturing capacity to nearly 218 million litres per year. BHL generates 397 MW of power from the bagasse produced in its sugar mills. After meeting its own energy needs, BHL has a surplus of over 90 MW. The Company has already begun to supply significant part of this surplus power to the UP state grid.

BHL’s wholly owned subsidiary, Bajaj Eco-tec Products Limited (BEPL), has commenced trial production of environment-friendly Medium Density Fibre Boards (MDF) and Particle Boards (PB), both from its bagasse waste. Both MDF and PB are invaluable substitutes for wood in construction and furnishing. The manufacturing of MDF and PB will be a trail-blazing venture in India. It will protect and preserve India’s forests from commercial exploitation by the construction and furniture industries. A 50,000 cubic metre MDF plant saves one lakh mature trees from being cut down in a year. The three Units, one each in Western, Eastern and Central UP, have commenced trial production. BEPL will be among the very few units in the world to manufacture MDF and PB that will be completely wood-free. The three Units, put together, will turn out

210,000 cubic metres of MDF and Particle Boards in a year. This will prevent the felling of an estimated 420,000 fully matured trees annually.

Valuations

At CMP, stock is trading at 16.46 P/E multiple of its FY2010 estimated earnings. We recommend investors to Buy “Bajaj Hindustan” at every dips with medium to long term investment horizon.