Shree Renuka Sugars, owned by the Singapore-based Wilmar Group, expects to finish increasing its ethanol capability to 1,250 kilo litres per day (klpd) from 720 klpd within the March quarter. The corporate expects ethanol to contribute about 40 per cent of its income, excluding the refinery enterprise.
Atul Chaturvedi, Chairman, Shree Renuka Sugars, informed businessline that the demand for ethanol is powerful and it shouldn’t be a shock if the trade diverts 4.5-5 million tonnes (mt) of sugar to supply ethanol.
The expanded capability of the corporate ought to come into play from the top of this month or early February and begin reflecting on its books from the December quarter. In the course of the present sugar season, the present ethanol plant is producing at 900 klpd, greater than its capability of 720 klpd, stated Chaturvedi.
Branded sugar development
Ever since Wilmar took over Renuka it was bullish on ethanol and wished to divert extra sugar to ethanol. The ethanol capability has been elevated to 1,250 klpd from 530 klpd in 2018, he stated. Between the 5 crops in Karnataka and two in Maharashtra, the corporate expects to crush 6.3 million tonnes of sugarcane like final 12 months.
The sugar refining plant at Kandla centered on exports is working at 120 per cent capability utilisation. Madhur, the branded sugar, has been registering 20 per cent development every year, he stated.
With a spotlight to make Madhur an all-India model from being largely south-focused, the corporate is searching for a contemporary acquisition.
Requested whether or not the corporate will take into account bidding for Bajaj Hindustan, Chaturvedi stated it’s searching for alternatives to derisk enterprise, notably with Madhur changing into a pan-India model.
Final September, lenders led by SBI, dragged Bajaj Hindusthan Sugar to NCLT for non-compliance with a ₹5,000 crore mortgage restructuring settlement signed earlier. A part of the Bajaj Group (Kushagra), the corporate has 14 sugar crops with combination cane crushing capability of 1,36,000 tonnes crush per day, six distilleries with capability to supply Industrial alcohol of 800 kilolitres per day and 14 cogeneration crops of 449 MW.
Ethanol diversion
Until just lately, the sugar trade confronted issues because it used to crush cane for 4-5 months and carry the sugar stock for 10-12 months. The curiosity burden on the stock was fairly killing, he stated.
However now, he stated, through the crushing season cane juice will get diverted for ethanol and through the low season, sugar could be transformed to ethanol. The sugar sector is in a candy spot after assembly the federal government’s twin goal of inexperienced ethanol provide and clearing sugarcane arrears with out incurring subsidy.
