Sugar maker EID Parry, a subsidiary of the Rs 54,722-crore Murugappa group, is looking to increase its footprint in ethanol production to leverage the Centre’s move to allow up to 20% of blending of the product with petrol by 2025.
Capacity expansion of 120 kilo litre per day (KLDP), involving dual feeds, is under way at the company’s distillery at Sankili in Andhra Pradesh. Its Haliyal plant in Karnataka is undergoing a 120-KLDP expansion at an investment of Rs 181 crore, which will be commissioned by Q4FY24.
Each 120 KLPD plant will add about 3.25 crore litres of alcohol, and will be closer to 18 crore litres by FY24-end, the company said. In Q2, it sold 1.70 crore litres of ethanol as against 1.03 crore litres in the corresponding period last fiscal. Its distilleries are running at 90-92% capacity utilisation. EID Parry has five distilleries with a capacity of 297 KLPD.
S Suresh, MD, EID Parry (India), recently told analysts that distilleries have been planned in such a way that the available cane volumes match with current capacity. He said he does not think it needs to increase the cane volumes at the current level to manage the distillery inputs.
EID Parry’s sugar and distillery segments have performed better in Q2FY23 as compared to the corresponding quarter of the previous year on account of increased sales volumes and realisations coupled with good sales mix in distillery, while the cogen profitability has been impacted due to increase in coal prices.
The cane crushing volumes have increased to 8.4 lakh metric tonne (LMT) in Q2 as against 6.6 LMT a year ago. The government has brought in a release order for exports and the quota allocated to the company was 0.31 LMT to be fulfilled before October 31. The company has already exported 0.28 LMT in Q2FY23.
Apart from the five distilleries, EID Parry has six sugar factories with the capacity to crush 40,300 tonne of cane per day. In the nutraceuticals business, it holds a strong position in the wellness segment mainly catering to the world markets with its organic products.