Dalmia Bharat Sugar plans to double annual ethanol manufacturing capacity to 15 crores litres

By OEM Update Editorial June 24, 2021 4:08 pm

Company plans to augment its ethanol manufacturing capacity to 15 crore litres per annum from January 2022 from 8 crore litres currently. 

Dalmia Bharat Sugar & Industries Limited’s move to augment its manufacturing capacity is in line with the government’s decision to raise ethanol blending in auto fuels to 20 percent by 2025 from around 8 percent currently. With this capacity expansion, Dalmia Bharat Sugar will divert around 1,50,000 tonnes of sugar for ethanol production compared to 60,000 tonnes now. The expansion will happen at the company’s Jawaharpur, Nigohi and Kolhapur plants. One new distillery will be set up at Ramgarh. 

The company firmly believes that the recent announcement by the central government to advance an ethanol blending programme of 20 percent to 2025 is a step in the right direction as it will be beneficial for both: the country and the sugar manufacturers. The move will allow the industry to cut carbon emissions and reduce the outflow of foreign exchange as crude oil imports will come down. 

Dalmia Bharat Sugar has three sugar factories located in Uttar Pradesh (Ramgarh, Jawaharpur and Nigohi) and two in Maharashtra (Kolhapur and Sangli). As of now, the company has aggregate sugarcane crushing capacity of 34000 TCD, distillery and co-generation operation of 240 KLPD and 119 MW respectively.  In the ongoing sugar season, Dalmia Bharat Sugar has exported 66 KMT of sugar till 31st May 2021. The sugar exports were at 192 KMT in the previous season. 

The sugar industry will get benefit from this move as the industry was also looking to find ways to balance sugar production with consumption as the opportunity to export will come down. The advancement of the ethanol blending programme means that in the next four to five years, the industry will be able to balance its output with consumption, which will translate into reasonable prices for the sweetener and keep inventory under control.
For more info, visit: www.dalmiasugar.com