Top 4 Ethanol Stocks To Watch Out In 2023
Ethanol stocks have gained immense focus ever since the government put forward its ambitious ethanol blending programme. Here are the top stocks to watch out in 2023.
Generating biofuel was a need of the hour. Increasing pollution and rising gasoline prices warranted the need for alternative fuels.
That is why, the blending of ethanol with motor spirit has gained immense focus of late. The blending helps in reducing pollution, conserves foreign exchange and increases value addition in the sugar industry enabling them to clear cane price arrears of farmers.
The roadmap for ethanol blending in India 2020-25 lays out an annual plan to increase domestic ethanol production in line with the target of the amended national policy on biofuels (2018) as well as with its Ethanol Blending Petrol (EBP) Programme to reach a blending of 20% of ethanol in petrol (E20) by 2025-26.
Top 4 Ethanol Stocks To Watch Out In 2023
The roadmap for ethanol blending in India lays out an annual plan to increase production. (File)
Generating biofuel was a need of the hour. Increasing pollution and rising gasoline prices warranted the need for alternative fuels.
That is why, the blending of ethanol with motor spirit has gained immense focus of late. The blending helps in reducing pollution, conserves foreign exchange and increases value addition in the sugar industry enabling them to clear cane price arrears of farmers.
The roadmap for ethanol blending in India 2020-25 lays out an annual plan to increase domestic ethanol production in line with the target of the amended national policy on biofuels (2018) as well as with its Ethanol Blending Petrol (EBP) Programme to reach a blending of 20% of ethanol in petrol (E20) by 2025-26.
No wonder investors and experts alike are all gung-ho on the top ethanol companies in India.
Back in January 2022, we wrote about the top 4 ethanol companies in India, already taking a lead by investing heavily in the ethanol segment.
In today’s article, we take a look at 4 more ethanol companies that have committed big amount towards increasing their capacity. These ethanol stocks should be on your watchlist for 2023.
1 Triveni Engineering & Industries
Triveni Engineering & Industries is an Indian conglomerate with diversified businesses in sugar and engineering segments. The company is engaged in sugar and alcohol, including ethanol production, power co-generation, power transmission, industrial gears and gearboxes and defence, water treatment solutions and FMCG brands.
The company is one of the largest integrated sugar manufacturers in India. It produces fuel-grade ethanol.
It has 3 state-of-the-art distilleries with 520 KLPD capacity as on 31 March 2022. By July 2022, the company expanded the capacity to 660-kilo litre per day (KLPD) through rationalization and debottlenecking.
The company is actively focusing on capacity expansion through greenfield and brownfield methods.
For the financial year 2021-22, the company produced 95,768 KLPD ethanol. 80% of it was produced from B-heavy molasses.
The company’s ethanol production plans are in tandem with the government’s ethanol blending policy. The sugar industry is expected to divert 4.5 million (m) tonnes of sugar towards the ethanol programme this year.
Considering the same, the company is planning to divert almost 12% of sugar towards ethanol production.
Also, the company plans to increase their ethanol capacity from 660 KLPD to 1,100 KLPD. The expansion will allow the company to increase its ethanol output from 180 m litres to 31 litres by the financial year 2024-25.
2 Dhampur Sugar Mills
Dhampur Sugar Mills is an India-based integrated sugarcane processing company engaged in the manufacturing and selling of sugar, green energy, and chemicals. The company’s segments include sugar, green energy, chemicals/ethane and others.
The company has been in business for nearly 90 years. Over time, it has emerged as one of the major players in India’s sugar sector. The company’s performance in the last few years depended on two words – sugarcane and ethanol.
It has a sizeable ethanol-producing capacity. It possesses a cane-crushing capacity of 23,500 tonnes per day. The distillery possesses a capacity of 250 KLPD.
3 Dalmia Bharat Sugar and Industries
Dalmia Bharat Sugar and Industries operates in the FMCG industry. With a total cane crushing capacity of 35,500 tonnes of cane per day (TCD,) it Limited is one of India’s fastest-growing sugar companies and one of the nation’s top sugar producers.
Its major product is sugar. The principal cane-crushing operation generates molasses as a by-product, which is utilized to manufacture ethanol. Almost 100% of molasses, generated through cane crushing operations are utilized to manufacture ethanol.
In line with the government of India’s policy on the ethanol blending programme, in the financial year 2021-22, the company almost doubled its distillery capacity from 80 m litres. to 16 m litres per annum while diverting 25% of its sugar production capacity during the year.
The management expects the distillery segment to be the main pillar of the company’s growth.
4 EID Parry
E.I.D-Parry is part of the Tamil Nadu-based Murugappa Group and the largest sugar producer in South India. It is one of the top five sugar companies in India by growth.
The company has a rich history of more than 225 years, of manufacturing white sugar from sugarcane. It was the first company in the country to install a distillery.
It also became the first sugar manufacturer in India to produce ethanol from B-heavy molasses and sugar syrup at the Nellikuppam plant, with the process validated by the National Sugar Institute, Kanpur.
As part of its future-forward strategies, the company has augmented its ethanol & extra neutral alcohol production capabilities across its plants to mine the high potential in the emerging green energy space.
In the past few years, co-generation and ethanol have emerged as twin revenue-generating streams for the company, with Ethanol slated to be a major growth accelerator for its sugar business.
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