In a strategic move to expand its ethanol production capacity, Godavari Biorefineries Ltd has announced plans to invest approximately ₹130 crore in setting up a new 200 KLPD (kilo litres per day) corn/grain-based ethanol distillery. This expansion aims to enhance operational flexibility through a dual-feedstock system, complementing its existing sugarcane-based operations.
The investment will be financed through a mix of internal accruals and debt, with the new distillery expected to be commissioned by Q4 FY2026.
The new facility will introduce a dual-feedstock capability, allowing the company to use alternative feedstocks such as maize. This flexibility is particularly significant as it helps mitigate disruptions caused by poor monsoons, climate changes, or policy shifts.
Samir Somaiya, Chairman and Managing Director of Godavari Biorefineries, highlighted the importance of this expansion, saying: “We are investing in new corn/grain-based ethanol production to complement our existing sugarcane-based operations. This will give us dual-feedstock capability and ensure more resilient ethanol production, even during climate-related disruptions.”
This investment aligns with Godavari Biorefineries’ broader vision to support India’s transition towards sustainable energy. With the Indian government’s push for ethanol blending in fuels under the Ethanol Blending Programme (EBP), the new facility will position the company to meet the rising demand for ethanol while enhancing its resilience against climate-induced risks.
Godavari Biorefineries operates an integrated biorefinery with an existing ethanol production capacity of 570 KLPD. The company’s product portfolio includes:
These products cater to key industries such as food and beverages, pharmaceuticals, flavours and fragrances, power, personal care, cosmetics, and fuel.
The company supplies its products to prominent clients like Hershey India, Hindustan Coca-Cola Beverages, and LANXESS India, showcasing its strong market presence across diverse sectors.
On December 17, 2024, shares of Godavari Biorefineries traded marginally higher at ₹359 on the NSE as of 11:00 AM, reflecting investor optimism around the company’s strategic expansion plans.
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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