[December 01, 2005]
Board Meeting Outcome

Shree Renuka Sugars Ltd has informed BSE/NSE that the Board of Directors of the Company at its meeting held on December 01, 2005, inter alia, has approved the following business:

1. A proposal for acquisition of balance plant facilities and for relocation of the same to a new location in the State of Karnataka with expansion of cane crushing to 4000 TCD.

2. Expansion of capacity at the Company's Munoli plant in the State of Karnataka from 2500 TCD to 6000 TCD.

3. Increase in Cane crushing capacity of the green field sugar unit at Burlatti, Taluka Athani, District Belgaum from 5000 TCD, as is originally envisaged in the Prospectus, to 6000 TCD and Setting up of 15 MW cogeneration power plant at the same location.

4. The total cost of the projects estimated by the Company is Rs 1600 million and the funding of will be through mix of debt and internal accruals.

5. The proposed acquisition, expansion cum relocation plans are likely to commence commercial operations by December 2006.

The addition to the existing and already announced capacity of cane processing would be 8500 TCD and cogeneration would be 15 MW taking the Company’s total capacity next season to 20,000 TCD (inclusive of existing lease of 4000 TCD) and Cogeneration capacity to 50.5 MW