Shree Renuka Sugars will be expanding its ethanol production capacity from the existing 720 Kilo Litres per Day (KLPD) to 1250 KLPD by December 2022, according to wap.business-standard.
The stock of the company advanced 1.62% to Rs 50.25 on Monday after the company shared this information.
The board of directors of the company had in February 2021 approved the plan of expansion of ethanol production capacity from 720 KLPD to 970 KLPD and the CAPEX plan required an investment of Rs 204 crore which was funded via borrowings.
The board of the company has further approved the capacity expansion plan of ethanol production to 1400 KLPD in its meeting held on June 25, 2021, to tap the huge demand for ethanol following the ethanol blending programme promotion by the Government of India.
The government of India has made it mandatory for 20% ethanol blending in fuel by 2025 and this has created a huge untapped demand for ethanol that can benefit the company in future.
The company is one of the largest sugar and green energy producers in India.