Shree Renuka Sugars explains shift focus to ethanol business

India's crude dependence on the world is at 85 percent, but Atul Chaturvedi, Executive Chairman of Shree Renuka Sugars, believes that the thrust on ethanol will make the country independent. In an interview on CNBC-TV18, Chaturvedi highlighted that even if crude prices go down, there is no impact on ethanol demand. Ethanol is still more cost-efficient than fuel in the country, and Shree Renuka Sugars has expanded its ethanol capacity from 520 KLPD to 1,250 KLPD.

Chaturvedi said, “India is committed to zero carbon emissions by something like 2070 and the thrust from the government side is very, very strong. I see no reason why the trust should actually come down, because whether we like it or not, as a producer, we are getting something like Rs 65 per litre as payment from the oil marketing companies, whereas, as a consumer, we are paying something like Rs 105 210 per litre. So, there is no subsidy element involved. So, that is the reason why we as a company are quite gung-ho on the ethanol expanding big time in the country.”

According to Chaturvedi, ethanol will help ramp up revenue as ethanol volumes are higher by 20-25 percent. The full benefit of ethanol capacity expansion will come in FY24.