Triveni Engineering to invest Rs 460 crore to set up 2 distilleries in UP

Sugar firm Triveni Engineering & Industries Ltd will invest Rs 460 crore to establish two new distilleries in Uttar Pradesh amid rise in demand of ethanol for blending with petrol.

In a statement, the company informed that the board of directors approved the expansion programme to set up two new dual feedstock (sugarcane derived and grain) distilleries with an aggregate capacity of 450 kilo litres per day at Rani Nangal and Sabitgarh in Uttar Pradesh.

The proposed expansion will lead to increase in total distillation capacity to 1,110 kilo litres per day.

The total cost to set up these two plants is estimated at about Rs 460 crore. These distilleries are expected to commence commercial production in the third quarter of FY24.

The installation of two new dual feedstock (sugarcane derived and grain) distilleries will enable the company to expand its alcohol business, making overall operations more profitable, Triveni Engineering said.

''We are enthused with the performance of the distillery segment. As against capacity of 320 kilo litres per day operated in FY 2021-22, our capacity currently stands at 660 kilo litres per day, which will result in significant growth in the turnover and profitability of the distillery segment,'' said Dhruv M Sawhney, Chairman and Managing Director, Triveni Engineering & Industries Ltd.

''We have decided to further expand the capacity by 450 kilo litres per day so that it becomes a sizeable business and provides significant revenue streams,'' he added.

Sawhney showed full confidence in the commitment of the government to the Ethanol Blended Petrol (EBP) programme and said it is augmenting capacities on dual feedstock basis to provide flexibility to select the feedstock based on commercial economics.

Meanhwile, the company's Profit After Tax (PAT) fell 28 per cent to Rs 66.45 crore in the first quarter of this fiscal year from Rs 92.30 crore in the year-ago period. Revenue from operations (gross) increased to Rs 1,361.48 crore from Rs 1,111.46 crore.