Nayara Energy, a private downstream company, in its effort to diversify its product portfolio, is planning to invest Rs 600 crore for setting up ethanol manufacturing plants in the country. The move is in line with the government’s target of 20% ethanol blending for FY26, the company said on Tuesday.The company plans to set up two ethanol manufacturing plants, each with a production capacity of 200 kiloliters per day (KLPD), in Andhra Pradesh and Madhya Pradesh. Land for the proposed plants has already been identified and purchased in both states.
“The establishment of ethanol facilities will significantly enhance Nayara Energy’s ethanol supply reliability, playing a crucial role in achieving the government’s 20% blending target by the end of the fiscal year 2025-26,” Alessandro des Dorides, chief executive officer, Nayara Energy said. The company also aims to increase the number of ethanol plants to with a combined production capacity of approximately 1,000 KLPD with a focus on value enhancement in retail operations and ensuring the reliability of the ethanol blending program in the future.
“This strategic move into ethanol manufacturing highlights our dedication to sustainability, regulatory compliance, and long-term growth in the dynamic energy sector. By expanding the presence in the ethanol segment, we aim to actively contribute to the country’s renewable energy goals and foster a greener future,” the CEO said.Nayara Energy, responsible for around 8% of the country’s refining output, operates India’s second-largest single-site Vadinar refinery with a capacity of 20 million tonnes per annum.
The company has over 6,300 retail outlets and plans to increase its retail fuel stations by 50% by 2030. In FY23, Nayara Energy recorded a net profit of Rs 9,592 crore on operational revenue of Rs 1.37 trillion. It also aims to have a larger share in India’s downstream petroleum value chain by diversifying its portfolio in the petrochemical industry, chief financial officer Rajani Kesari has earlier told FE. The company’s other targets for FY25 include commissioning of the first phase of its polypropylene unit project in Vadinar, Gujarat. The total investment in the project is about $750 million.
