GMR Group's ISO 9001:2000 accredited Sugar division started production in 1997. It has a cane crushing capacity of 5000 tonnes per day,  Co-generation capacity of 16 Megawatt (MW) and a Distillery unit capacity of 45  Kilo litres per day (KLPD). More significantly, this plant has brought rapid economic development to Srikalulam district, a remote area in Andhra Pradesh. Livelihood generated through it has helped to improve the economic & social standard of living of the farmers.

The company uses the most advanced technology to produce two grades of superior quality sugar, namely  M - 30 and S - 30. It is the first full fledged co-generation plant in Andhra Pradesh with an installed capacity of 16 MW. The molasses produced from sugar is utilized as a feed stock in the  distillery and the bagasse produced from cane is used as fuel for the boilers.

The Sugar Plant has adopted several cost-effective and steam-conservation technologies such as Falling Film Evaporator, Vertical Continuous Pans and Short Retention Time Clarifier. Through these measures it has been able to reduce the existing steam consumption from 35% to 32%, thereby earning the distinction of being the lowest steam consuming plant in the sugar industry.