Grain-based ethanol has the potential to significantly boost India’s energy security and help achieve the government’s long-term ethanol blending goals, according to Athar Shahab, Managing Director of Zuari Industries. However, he emphasized that the industry needs clear policies on pricing, procurement, and subsidies to ensure sustained growth and investor confidence, reports The Economic Times.
Speaking to ET Digital, Shahab said India’s next wave of ethanol growth will come from companies that can effectively operate in both sugar and grain segments. He noted that execution and policy support will be critical, particularly as delays in revising ethanol procurement prices pose a risk to industry viability.
“Stable and forward-looking policies are essential for long-term investments in the sector,” Shahab said.
Zuari Industries, originally established in 1967 as a fertiliser company, has evolved into a diversified conglomerate. Its operations now span sugar, power, ethanol, real estate, engineering, and financial services. The company’s core business includes a sugar plant with a 10,000 TCD capacity, a 125 KLPD distillery, and a 40.85 MW cogeneration unit. It is also developing a 180 KLPD grain-based bioethanol distillery through a joint venture with Slovakia-based Envien International, scheduled to be commissioned in September 2025.
Zuari’s broader strategy involves expanding to a 1,000 KLPD ethanol platform while exploring renewable energy sources like compressed biogas. In agriculture, its FarmHub division focuses on sustainable solutions to enhance soil health and farm productivity.
Commenting on the shift toward grain-based ethanol, Shahab said it offers flexibility and reduces reliance on sugarcane, helping the sugar industry manage price and supply fluctuations. However, he cautioned that the transition requires substantial investment in infrastructure and a robust supply chain. He also highlighted concerns over the potential impact on food availability and inflation, urging the government to provide clarity on policies to ensure economic viability.
Shahab also weighed in on global trade, stating that India should continue to ban ethanol imports for blending purposes to protect its domestic industry. “Bioethanol is crucial for reducing fossil fuel dependence, and policy stability is essential to protect ongoing and future investments,” he said.
Zuari Industries continues to align its growth plans with national energy and environmental policies, while managing risks from fluctuating sugarcane prices and power tariffs. Its focus remains on scaling up operations sustainably — with initiatives like zero-effluent systems, water conservation, and circular energy models already in place.
“Sustainability is not a choice; it’s integral to how we operate,” Shahab concluded.
