EID Parry (India), a Murugappa group company, plans to invest ₹87 crore in expanding the ethanol capacity at its Nellikuppam unit in Tamil Nadu to capitalise on the EBP (Ethanol Blending Programme) opportunity.

The company’s board has approved the augmentation of ethanol capacity by expanding the existing 75 kilolitres per day distillery unit to 120 klpd distillery unit at Nellikuppam in Cuddalore district at an investment of ₹87 crore for the production of ethanol from syrup and B-heavy molasses.

Last month, the company announced the commencement of commercial operations of its new 120 klpd distillery (which has the flexibility to operate with multiple feedstock including molasses/cane juice and syrup/grain-based) at its sugar unit at Sankili, Andhra Pradesh with effect from January 11, 2023.

The expansion programme to increase the ethanol capacity from to 120 klpd from 50 klpd at Haliyal, Karnataka is on the anvil. This is expected to be commissioned by Q4FY24.

Meanwhile, the company has reported a standalone profit after tax of ₹16 crore for the December 2022 quarter as against ₹18 crore in the year-ago quarter. Its revenue was higher at ₹727 crore as against ₹686 crore. EBITDA was lower at ₹63 crore (₹72 crore).

The Murugappa Group company’s consolidated PAT was higher at ₹482 crore when compared with ₹395 crore in the year-ago period. Consolidated revenue from operations posted an increase of 52 per cent at ₹9,917 crore when compared with ₹6,529 crore. EBITDA grew 29 per cent at ₹843 crore (₹656 crore).

“The company’s profitability in the sugar segment has been slightly reduced in Q3 of the current year as compared to the Q3 of the previous year mainly on account of an increase in coal prices and reduction in distillery production, partially offset by improved sugar export volumes and realisations,” said S Suresh, Managing Director of the company.