Associated Alcohols & Breweries Limited (AABL), a leading name in the alco beverage industry, announced the start of the commercial production of its ethanol plant situated at Barwaha (Near Indore), Madhya Pradesh.
The new ethanol plant capacity is 130 KLPD and has been set up with an approx. investment of Rs. 150 Cr. It is a grain-based ethanol facility equipped with the capability to process various feedstocks. The plant is equipped with advanced technology and a commitment to eco-friendly practices, representing a major milestone in AABL’s dedication to providing clean energy solutions. In addition, a boiler has been installed alongside the ethanol plant, capable of utilizing a range of fuels, including coal, husk, and briquettes. This strategic addition will improve operational efficiency and overall performance. The ethanol plant complements the company’s current offering as a supplier of high-quality Extra Neutral Alcohol (ENA) for its IMFL products and to the other bottlers.
AABL has reported a revenue of Rs 3,266 million for H1 FY24 with an EBITDA of Rs 379 million, up 21.9% YoY. The company boasts a strong balance sheet with a net debt-to-equity ratio of 0.04x as of H1FY24.
Mr. Prasann Kumar Kedia, Managing Director of the Company, expressed enthusiasm about this milestone, stating, “The commencement of our Ethanol plant is a testament to our dedication to sustainable energy. We have already received the orders from the Oil Marketing Companies (“OMCs”) for the supply till April 2024. The OMCs have recently revised the rate of maize-based ethanol to Rs. 71.86, and since we are currently using Maze as feedstock, we are billing the ethanol to OMCs at this revised rate. While the launch is cause for celebration, like any new venture, there may be some teething issues during the initial phases. However, we are confident in our team’s ability to overcome them swiftly. We appreciate the support of our stakeholders and the community as we embark on this exciting journey towards a greener and more sustainable future.
