Indian company takes over Komenda Sugar Factory

The company, Park Agrotech Ghana Limited is expected to inject $28 million into the factory between 2020 and 2023.

This comes after a bid evaluation process was completed, with Pricewaterhouse Coopers (PwC) appointed as the transaction's advisors.

The Ghana-based company is a subsidiary of the Skylark Group of Companies of India, one of the largest integrated farming businesses in India.

Park Agrotech, which emerged as the successful bidder after a rigorous selection process conducted by the accounting and advisory firm, PricewaterhouseCoopers (PwC), is expected to invest $11 million of the amount into sugarcane cultivation, $6 million to upgrade plant and machinery and $11 million as working capital to bring the ailing factory back on its feet.

A total of 15 companies expressed interest in the factory, out of which five submitted bids to become the strategic partner.

The STM Project Limited, a company renowned for sugarcane development and sugar plant modernisation, expansion and rehabilitation for more than 200 sugar factories in India and other parts of the world, will serve as the technical partner, with technical support from the University of Cape Coast.

Komenda Sugar Factory Pulse Ghana

The government in 2016 secured a US$35 million EXIM Bank facility to set up the factory, while a US$24 million facility was also set aside to support out-grower farmers.

The factory, after its opening to fanfare on May 31, 2016, has been idle due to serious deficiencies in planning of the project and other financial, technical and legal challenges.

Overall, about 35 items had not been installed on commissioning although they are critical for the production of Sulphur-less white sugar.

The land size available for cultivation is far less than the 6,000 acres required for supplying sugar cane to run the factory at full capacity.