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Shree Renuka Sugars Ltd, a large sugar manufacturer,expects to commission its expanded ethanol production capacity in the October-December quarter this year. The company is in the process of doubling its ethanol manufacturing capacity from the current 720 kilo litres per day (KLPD) to 1,400 (KLPD).
Atul Chaturvedi, Executive Chairman, SRSL said the expansion of ethanol capacity is happening at the company’s plants in Athani, Munoli and Avalga in Karnataka. The company is investing about Rs ₹700 crore in the capacity expansion, which started about six months back. “We will be commissioning it in the last quarter of the calendar year,” he said.
The Government has recently advanced the 20 per cent blending target for ethanol by 2025. Presently, the ethanol blending ratio is about 10.1 per cent. “We still have a long way to go,” Chautvedi said adding that the company would be evaluating options to expand its cane crushing capacity, which currently stands at 42,000 tonnes per day. “As our ethanol play is expanding, we would have to look at crushed capacity through acquisition or expanding our existing plants,” he said.
This year the company has crushed close to 6.3 million tonnes of sugar cane compared to 4.7 million tonnes in the previous year, a 34 per cent increase, Chaturvedi said adding that ethanol production was also up 30 per cent during the year.
Largest sugar exporter
SRSL, which exported about 1.2 million tonnes of sugar last year, was the largest exporter of the sweetner from the country, Chaturvedi said. “Now with India being a surplus sugar country and exports becoming regular feature, we are now sourcing raw sugar domestically and upgrading it for the international market,” he said. The company has refinery in Kandla that services the markets of the Middle East and East African region. “We have already increased the refining capacity at Kandla from around 3,000 tpd to around 4,000 tpd, with minor changes and no major investment. The company has been producing about 1.2 lakh tonnes per month in Kandla month after month,” he said.
Back in black
Global agribusiness giant Wilmar has about 62.5 per cent stake in SRSL, which is back in black for the past two financial years. During 2021-22 company reported a net profit of ₹113.10 crore on revenues of ₹6,125 crore as compared to a net of ₹55.70 crore on revenue of ₹5,543 crore in the previous year.
“By and large, we have been able to sort out the legacy issues. We have a strong parentage in Wilmar, which has strong roots in sugar and agriculture. That will help us navigate the issues. We are confident of the future,” Chaturvedi said.
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