ALCOHOL BUSINESS
The concerted Government push to the production and blending of fuel ethanol with petrol has unveiled new opportunities for diversification and expansion of the Indian sugar industry. The Government focus is on reducing India’s dependence on imported crude oil while minimising the environmental footprint of vehicular emissions. The growing shift towards biofuels, as underscored by the EBP20 (20% ethanol blending in petrol) by 2025 target set by the Government, has triggered a major transformation in the strategic approach of sugar companies. We have effectively capitalised on this opportunity to drive continuous growth in its Ethanol / our Alcohol business.
How we maximised Alcohol potential in FY 23
(For more details on the investments and initiatives of FY 23, please refer to the Management Discussion and Analysis section of this Report).
With 660 KLPD capacity, we are among the leading producers of alcohol including bio-ethanol. The Milak Narayanpur unit is the first distillery of its size in the country to utilise the entire range of feedstocks (B-heavy Molasses, Syrup, Grains) in FY 23.
Total ethanol production
Distillation Capacity
Alcohol sales
Alcohol sales from Grain-based feedstocks
Revenue Net of Excise duty
Alcohol sales from Sugarcane- based feedstocks
PBIT
Average Realisation
As a strategic decision, we have chosen to produce ethanol from sugarcane-based molasses and grain. After trialling for a short duration in early FY 23 (SS 2021-22), we took the decision to keep sugarcane juice out of the raw material mix for ethanol production due to the unfavourable economics based on prevailing prices. This differentiated approach is aimed at enabling better economies for the business, leading to enhanced profitability. It gives the flexibility to take the final decision on the raw material based on the relative pricing. As a focussed decision not to produce on juice with the given rates, we did not undertake any sugarcane juice processing during SS 2022-23.
