Siva sells beans to extract ethanol and wind power

Venkatachari Jagannathan
17 March 2007

While the Sterling Group is tight lipped about the deal size, it is reported that Siva has raked in around $125 million from the latest corporate trade.

This pile of cash is expected to be pumped into his new ventures-ethanol production- in India (Sterling Bio Diesel Limited) and the US (E85 Inc) and wind energy generation (WinWinD) and real estate (Sterling Projects and Engineering Limited).

In March, 2006, he sold his stakes in Aircel Cellular and Dishnet Wireless Limited for $1.08 billion to the joint venture promoted by Maxis group Singapore and Apollo Hospitals group in Chennai and started pursuing investment opportunities in media (invested $26.66 million in Sahara One Media & Entertainment for 14.98-per cent stake), wind energy (invested €20 million in WinWinD Oy, in Finland for acquiring a 40-per cent stake) real estate, fuel ethanol production, wind energy, e-governance initiatives in India and overseas.

It is believed Sterling Infotech group outfit E85 Inc will build ten captive ethanol facilities throughout North America, with production capacity of 100 MM gallons per year and co-produce 1 to 2 billion gallons of ethanol per year via network providers. According to E85 Inc's website, the company intends to co-invest in up to ten ethanol developments and arrange tolling agreements with existing ethanol producers.

In India, group company Sterling Bio Diesel will set up ten 200-kilo litres per day ethanol plants using sweet sorghum and tapioca apart from sugar cane as feed stock.