In 2023, India produced about 6.5 billion litres of ethanol for use as fuel. This amount is expected to decrease slightly to around 6.3 billion litres in 2024.
Ethanol is a by-product of the sugar industry and comes from plant sources like sugarcane, corn, and wheat. It’s a renewable fuel mixed with gasoline to reduce vehicle emissions. Known as a biofuel, ethanol is one of the most popular alternative fuels globally. In India, ethanol is mainly made from sugarcane molasses and added to gasoline. The ethanol industry is expanding with growing interest in cleaner energy and government support for green energy.
In this article, we’ll look at top ethanol stocks in India based on a 5-year CAGR basis and the growth of ethanol-producing companies.
| Name | Market Cap (in ₹ crore.) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Triveni Engineering and Industries Ltd | 9,858.07 | 24.95 | 52.89 | 49.52 |
| Shree Renuka Sugars Ltd | 9,963.46 | -15.89 | 47.08 | 2.77 |
| E I D-Parry (India) Ltd | 14,541.35 | 16.16 | 39.88 | 72.22 |
| Balrampur Chini Mills Ltd | 11,490.63 | 21.5 | 33.13 | 46.19 |
Note: The list of the best sugar stocks has been selected from the Nifty 500 Universe and sorted by their 5-year CAGR as of August 28, 2024.
Triveni Engineering & Industries Ltd is a growing company with expertise in sugar and engineering. It is one of the top three sugar manufacturers in India and a leader in its engineering sector, which includes steam turbines, high-speed gears, gearboxes, and water treatment solutions. The company operates in two main areas: sugar and engineering. The sugar segment involves making sugar and distilling alcohol, while the engineering segment focuses on high-speed gears, gearboxes, and water treatment.
For the most recent quarter ended June 2024, the company’s revenue decreased to ₹1,533.63 crore from ₹1,547.52 crore in the preceding quarter. Meanwhile, the net profit declined to ₹30.87 crore from ₹159.82 crore in the previous quarter.
Key metrics:
Shree Renuka Sugars Limited (SRSL) is an integrated company focused on sugar and related products like power and ethanol. Established on October 25, 1995, SRSL’s main manufacturing sites are Munoli, Athani, Havalgah, and Karnataka. The company also operates three leased facilities in Ajara, Arag, Maharashtra, and Aland, Karnataka. SRSL has India’s largest sugar refining capacity, at 4,000 tons per day. It produces and refines sugar, ethyl alcohol, and ethanol, generating and selling power.
For the most recent quarter ended June 2024, the company’s revenue decreased to ₹2,871.50 crore from ₹3,298.20 crore in the preceding quarter. Meanwhile, the net profit declined to -₹135.20 crore from -₹122.20 crore in the previous quarter.
Key metrics:
EID Parry (India) Ltd is one of India’s major business groups. The company makes and markets a variety of products, including sugar, bio-pesticides, and nutraceuticals. It has expanded its global reach through partnerships with organisations like the Sugarcane Research Institute in Australia, the Sugar Processing Research Institute in Louisiana, Tate and Lyle International in the UK, and Mitr Phol Sugar Corporation Ltd in Thailand.
For the most recent quarter ended June 2024, the company’s revenue increased to ₹751.34 crore from ₹716.63 crore in the preceding quarter. Meanwhile, the net profit decreased to -₹78.59 crore from ₹80.27 crore in the previous quarter.
Key metrics:
Balrampur Chini Mills Limited (BCML) is one of India’s biggest integrated sugar companies. In addition to sugar production, the company also operates distilleries and generates power. BCML is known for its efficiency in sugar production and has increased its capacity through strategic expansions and acquisitions in recent years.
For the most recent quarter ended June 2024, the company’s revenue decreased to ₹1,421.60 crore from ₹1,434.26 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹64.63 crore from ₹197.32 crore in the previous quarter.
Key metrics:
India has become the world’s leading producer, user, and second-largest exporter of sugar. During the 2021–2022 sugar season, the country produced over 5,000 lakh metric tonnes (LMT) of sugarcane. Out of this, 3,574 LMT were crushed by mills to produce 394 LMT of sugar, with 359 LMT going to sugar production and 35 LMT used for making ethanol.
The central government has allocated around US$ 1.9 billion (₹15,948 crore) over the last 5 years, up to January 31, 2024, through various schemes to help improve the financial condition of sugar mills and pay off the cane price dues owed to farmers. According to Minister of State for Commerce and Industry, Mr Anupriya Patel, these schemes aimed to boost the financial stability of sugar mills.
India’s ethanol industry, driven by a shift towards renewable energy and government support, presents significant investment opportunities. The expanding ethanol sector in India can provide a promising landscape for investors interested in renewable energy. However, consider your investment objective and risk appetite before making a decision.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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