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Pune-based My Eco Energy is entering the bio-diesel market and the company plans to manufacture the fuel in three locations across the country, and also retail it.
The company is currently in talks to acquire three existing bio-diesel manufacturing units in Andhra Pradesh, Punjab and Maharashtra and expects to close the first deal in the next 45 days, Santosh Verma, one of My Eco Energy’s three promoters, said.
Feedstock for the bio-diesel, which will retail at around Rs 60 per litre, will be waste left after the process to make edible and non-edible oils.
“We plan to invest Rs 550 crore for the acquisition, upgrading the facilities and setting up of infrastructure,” he said, adding that the funds will be raised through a mix of debt and equity. By 2015, the company plans to increase the capacity to 10 lakh litres of bio-diesel per day through their own and contract manufacturing.
To begin with, the fuel is to be retailed in Maharashtra through 20 distribution centres and 250 filling stations that will be established by March 2015. The first of the filling stations will be up by the end of this year in Pune.
The fuel can be used in cars, buses and commercial vehicles, industrial vehicles, tractors, power generators and also boats that use regular diesel, Verma said.
The promoters already have Go Fuels, a UK-based company that makes and retails 50,000 litres per day of bio-diesel, and has a turnover of Rs 50 crore.
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