India’s push for ethanol blending marks a significant shift in its energy landscape, opening doors for substantial growth among large-scale ethanol producers. The government’s ambitious targets, coupled with rising environmental concerns, position these companies not just as players in the renewable energy sector but as key drivers of sustainable economic growth. With ethanol production capacity soaring to 1,623 crore liters by September 2024, the Ethanol Blended Petrol (EBP) Programme has made remarkable strides over just four years. This growth trajectory is set to benefit companies with established capacities exceeding 10 crore liters, offering investors a unique blend of government policy advantages and exposure to a sustainable energy transition.
Take Balrampur Chini Mills Limited (BCML), for instance. Founded in 1975, this Uttar Pradesh-based giant has diversified its operations beyond sugar production to include ethanol and renewable energy. With a distillery capacity of 1,050 kiloliters per day and a cogeneration capacity of nearly 280 MW, BCML is not just keeping pace; it’s setting the standard. Under the leadership of Mr. Vivek Saraogi, the company has reported a staggering 88% increase in net profit, reaching Rs. 534 crore in FY24. This growth reflects BCML’s commitment to sustainability, as it employs bagasse for power generation and champions zero liquid discharge technology. Their foray into bioplastics with India’s first polylactic acid plant showcases a forward-thinking approach that could redefine the industry.
Shree Renuka Sugars, another heavyweight in the sector, has also ramped up its operations, producing a projected 15.6 crore liters of ethanol annually. Despite facing a net loss that ballooned to Rs. 627 crore in FY24, the company has seen its revenue climb by 25.4%, underscoring a robust market demand for its products. Based in Mumbai, Shree Renuka Sugars operates with a crushing capacity of around 14,000 tonnes of cane per day, and its commitment to renewable energy through bagasse power generation positions it as a pivotal player in India’s green energy initiative.
Then there’s Bajaj Hindusthan Sugar, a stalwart with a history stretching back to 1931. While it has experienced a slight dip in revenue, the company remains focused on expanding its operations in biofuels and power generation. With a crushing capacity exceeding 136,000 tonnes of cane per day, Bajaj Hindusthan is strategically placed to reduce the nation’s reliance on fossil fuels. Its projected production of around 11.14 crore liters of ethanol showcases its ongoing commitment to the renewable energy landscape.
As India continues to prioritize ethanol blending, the implications for these companies are profound. They are not merely adapting to market demands; they are shaping the future of energy in India. Investors looking to tap into sustainable energy opportunities would do well to keep an eye on these industry leaders. The landscape is evolving rapidly, and those at the forefront of this transformation stand to benefit immensely.
