Jagatjit Industries secures ₹180 crore term loan from IREDA for ethanol plant
Jagatjit Industries Limited (JIL) has received a sanction of term loan of ₹ 180 crore from Indian Renewable Energy Development Agency (IREDA).
This capital is earmarked for the establishment of a 200 KLPD grain-based ethanol distillery plant, situated across 25 sprawling acres in Hamira, Punjab.
Objective
The primary objective of this facility is the production of ethanol for blending with petroleum, thereby contributing to the biofuel sector.
JIL has already secured environmental clearance from the Ministry of Forest & Environment in FY 2022-2023 for this ethanol manufacturing facility. The total project investment is approximately ₹210 crores, with a projected breakeven period of 5 years.
Roshini Sanah Jaiswal, Promoter and Executive Director at Jagatjit Industries Limited said, ‘We’re thrilled by the trust placed in us by the Indian Renewable Energy Development Agency. This loan accelerates our timeline to have the plant operational by Q4 2024. We anticipate ₹400 crore in revenue from the ethanol plant, with an EBITDA margin of approximately 15 per cent starting from year one. Ethanol is projected to contribute 20 per cent of the company’s total revenues in FY 24-25, increasing to a 25 per cent share in FY 25-26.”
The positive cash flows generated by the ethanol plant will be reinvested into the IMFL business and allocated towards debt repayment. The ethanol business is anticipated to achieve EBITDA positivity right from its inaugural year of operation.
“Employment opportunities”
Jaiswal added, “The new greenfield plant will generate employment opportunities for local workers. The government’s push towards the ethanol economy aligns with our goal of fostering green growth in India. We are proud to be at the forefront of this transformative journey towards sustainable and greener energy solutions for India”
Jagatjit Industries Limited recently announced its Q1 results for FY 23-24, the results showcase that the company’s total revenue stood at ₹181.17 crore, representing a increase of 42.42 per cent compared to the same period last year, when it stood at ₹127.21 crore.
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