Triveni Engineering to divert 12% of sugar production to ethanol

This expansion will allow the company to increase its ethanol output from 18 crore litres to 31 crore litres by FY25. Sawhney also mentioned that the industry as a whole expects to divert 4.5 million tonne of sugar to ethanol.

To support this expansion, Triveni Engineering & Industries' board has approved a Rs 460 crore capex for two new plants. This investment will help the company achieve its goal of doubling its revenues in the ethanol business.

“When we spoke last, we had expanded our capacities upto 660 KLPD. As we stand today, the board has approved a further Rs 460 crore capex for two plants of 225 KLPD each, which will raise the capacities of the company to 1,110 KLPD,” he explained.

Despite the company's focus on ethanol, Sawhney clarified that the board has not contemplated a demerger of their engineering business. Instead, the company is fully committed to expanding its presence in the ethanol industry.

The increase in ethanol production is not only beneficial for the industry, but also for the environment. Ethanol is a renewable fuel produced from plant materials, making it a more sustainable alternative to fossil fuels. Additionally, using ethanol in gasoline can reduce greenhouse gas emissions and improve air quality.

Sugar prices have reached 21.40 cents per pound – a six-year high – as India revised its production estimate to 34.3 million tonnes (mt). The announcement came as the Indian Sugar Mills Association (ISMA) cut its exports outlook to six mt due to higher temperatures that have led to the early maturity of the crop.

The rise in sugar prices is expected to have a significant impact on the global sugar market, as India is the world's second-largest sugar-producing nation and one of the world's largest consumers of sugar. The surge in prices may also lead to an increase in imports by other nations, particularly those that rely heavily on India's sugar exports.

ISMA, the industry body representing the sugar mills in India, has now revised its export outlook for the current season, which began in October 2021, to 6 mt from the earlier projection of 7 mt. The lower export outlook is attributed to the lower production estimate and the rise in domestic consumption in the country due to the upcoming festival season.

The stock of Triveni Engineering and Industries was down 3.12 percent in the last one week and 0.98 percent in the past month.