Davangere Sugar approves distillery expansion to tap rising ethanol demand
Davangere Sugar Company Limited plans to expand distillery capacity by 85 KLPD with a ₹127.5 crore investment, targeting rising ethanol demand. With current capacity nearly fully utilised, the move aligns with India’s ethanol blending push and aims to strengthen the company’s growth in the biofuel segment.
Davangere Sugar Company Limited has approved a major expansion of its distillery capacity as part of its strategy to benefit from growing demand for ethanol and supportive government policies.
The decision was taken at a board meeting held on Monday, where directors cleared a proposal to increase the company’s distillery production capacity by 85 kilo litres per day (KLPD). The expansion will take the total capacity significantly higher from the current 65 KLPD, which is already operating at around 96% utilisation.
The company said the proposed capacity addition is expected to be completed within 18 months. The project will require an investment of Rs 127.50 crore and will be financed through foreign currency convertible bonds.
In a regulatory filing to both the BSE Limited and the National Stock Exchange of India Limited, the company stated that the expansion is aimed at capturing opportunities arising from increasing ethanol demand.
The move comes at a time when ethanol blending programmes and policy support are driving investments across the sugar and distillery sector, encouraging companies to scale up production capacity.
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Source : Chinimandi
