Molasses, the by-product generated
during the manufacture of sugar is fermented and distilled and variants
of alcohol are manufactured.
The 160,000 litre distillery unit, with state of the art equipment and
bio-methanation process, is located at Muzaffarnagar which is
equidistant from two of our major sugar manufacturing facilities of
Khatauli & Deoband. This will ensure security of raw material.
The distillery business group caters
to three main segments:
- Used in Industrial applications
- Used in Potable liquor manufacturing
- Used as a Fuel - Ethanol
The company is already supplying to
all the leading customers in the abovementioned first two segments. Its
products have been very well accepted as they are meeting all the
specifications. The company has also started supplies of ENA to UB
Group.
The Company also has the capability
to produce fuel ethanol. It is presently not supplying fuel ethanol
under 5% blending programme as it was not qualified for the tender
floated by the oil marketing companies as its capacities come up after
the tender were floated. However recent announcements through press
release that fuel ethanol would be made mandatory at 5% blend (and 10 %
optional from October, 07) and raised to 10% mandatory blending from
October 08 would enable new tenders to be issued soon and we expect to
have ethanol supplies for our distillery unit to commence. The
government has also allowed the use of cane juice for producing ethanol.
The company is well positioned to qualify for the tenders once blending
is raised to 10%. The alcohol (other than fuel ethanol in the country
would thereby find another outlet raising realizations significantly
across all segments.
