EID Parry (India) Ltd. on Tuesday announced that the new 120 kilo litre per day (KLPD) distillery of the company at its sugar unit at Sankili in the Srikakulam district of Andhra Pradesh commenced commercial operations.
The commercial operations started on January 17. The company's Sankili sugar unit has the flexibility to operate with multiple feedstocks – molasses, cane juice, and syrup/grain based.
In November 2022, the EID Parry board of directors approved the setting up of a 120 KLPD distillery and 35 TPH incinerator boiler at the company's Haliyal unit in Karnataka at an estimated investment of Rs 180.71 crore. The company had announced its plans to finance the investment through borrowing and internal accruals.
Explaining the rationale behind the investment, the sugar firm had said that the Government of India has announced an Ethanol Blending Programme of 20 percent by the year 2025 and the company intends to avail this opportunity by increasing its foray into Ethanol production.
The proposed distillery will utilise sugarcane juice or syrup as its principal feedstock during the cane crushing season and also B-Heavy molasses during the off-season for manufacturing ethanol, which is expected to have an assured offtake by oil marketing companies under a clear pricing mechanism.
EID Parry is a listed company engaged in the business of sugar and nutraceuticals. The Chennai-headquartered company is a part of the Rs 369 billion Murugappa Group, one of India’s leading business conglomerates.
Shares of EID Parry ended 1.07 percent higher at Rs 545.20 on Wednesday.
