OUR BUSINESS
Our Company incorporation 31 March 2021 We are one of India’s largest biofuels producers, having strategically positioned ourselves as a prominent and diversified player in the biofuels industry, particularly in the Ethanol sector.
We hold the distinction of being the largest Ethanol producer in India based on installed capacity, with an aggregate production capacity of 1,400 kilo litres per day (“KLPD”).
- 1G Ethanol
- Compressed Biogas
- Extra Neutral Alcohol
- Fermented Organi Manure
- 2G Ethanol
- Sustainable Aviation fuel
- Green Hydrogen
- Dispensing Stations
Our Business Verticals
We intend to expand our Ethanol production capabilities by 600 KLPD in three locations, to an aggregate capacity of 2,000 KLPD by October 2024.
Further, we are in the process of converting our current mono feed (sugarcane juice / sugar syrup / molasses) unit to a dual feed unit. By March 2026, out of the 2,000 KLPD capacity, we intend to convert 1,000 KLPD to dual-feed, capable of producing ethanol from grain-based feedstocks or grains unfit for human consumption.
we intend to further expand our Ethanol production capabilities by setting up two greenfield units with an additional capacity of 700 KLPD comprising of two units of 500 KLPD and 200 KLPD each to an aggregate production capacity of 2,700 KLPD by Fiscal 2027.
As part of our Ethanol production, we also produce extra neutral alcohol (“ENA”), the primary raw material in the production
of alcoholic beverages. Our product portfolio also includes dry ice and liquid carbon dioxide (“CO2”), by-products in the
Ethanol production process.
Compressed Biogas (“CBG”) Production Capabilities Through our Subsidiary, Leafiniti, we are one of the first producers of CBG under the Sustainable Alternative Towards Affordable Transportation (“SATAT”) scheme introduced by the Government of India in 2018.
Our Subsidiary, Leafiniti, operates one CBG plant with a capacity of 10.20 tonnes per day (“TPD”) as of March 31, 2024, which also produces solid and liquid fermented organic manure (“FOM”).
To strengthen our CBG capabilities further, we have entered into a non-binding term sheet with Gas Authority of India Limited (“GAIL”), through which our Subsidiary, Leafiniti, to set up nine additional CBG plants, and we intend to set up additional CBG plants with a strategic partner, in each case subject to entering definitive agreements.
Proposed Business Verticals
Second Generation (“2G”) Ethanol. As an extension of our existing business, we intend to expand our operations and venture into production of 2G Ethanol by utilizing excess ‘bagasse’, a byproduct of sugar manufacturing, as the raw material.
We intend to utilize 800,000 MT of bagasse from our Promoter Group companies to produce approximately 6 crore litres per
annum of 2G ethanol. Our Company has signed MoU with Praj Industries Limited for technology advancement in various biofuels.
Sustainable Aviation Fuel (“SAF”). We intend to move up the value chain further by utilizing Ethanol to produce SAF. Towards this, we have entered into a MOU with a US-based sustainable fuel technology company to produce SAF.
We intend to set up a facility to produce 10 crore litres of SAF annually, which, according to the CRISIL Report, is intended to place us
as the world’s largest producer of SAF from Ethanol. We are evaluating modalities of manufacturing / licensing the technology related to SAF production.
It is expected that from 2027, all international flights will be subject to offsetting requirements under the mandatory stage of the Carbon Offsetting and Reduction Scheme for International Aviation, and the Indian Government has also announced a 1% SAF indicative blending target for 2027.
Mevalonolactone (“MVL”) and Allied Biochemicals. MVL can be used to produce various valuable products, for the synthesis of elastomers, specialty fuels, and SAF molecules.
We intend to produce MVL and allied biochemicals, during the manufacturing of Ethanol.
We have entered into an MOU with Visolis Inc., to enter into a technology collaboration for production of SAF.
We intend to undertake feasibility studies to understand the ability to produce MVL in dual purpose designed fermenters, which can
produce both ethanol and MVL.
Biofuel Dispensing Stations. With the Government of India’s increased push towards use of non-fossil fuel vehicles and
leveraging our ready source of Ethanol and CBG, we intend to set up biofuel dispensing stations. We are currently in the
process of establishing up our first dispensing station in Mudhol, Karnataka.
Our dispensing stations will be capable of dispensing motor spirit, high speed diesel, E85 and E93 blended fuel, bio-CNG, and will also have EV charging points, EV battery swapping and an non-fuel retail division to cater to fast moving consumer goods and automotive products.
The introduction of biofuel dispensing stations will allow us to venture into the direct to consumer space as direct retail suppliers.
Our Company is a green energy company steadfastly pursuing our objectives through a harmonious amalgamation of various policies laid out by the Government of India in its transition towards sustainable growth. From the foundational National Biofuels Policy 2018 to the strategic Ethanol Blending Program, the Pradhan Mantri JI-VAN Yojana, the SATAT initiative, to cutting-edge forays into green hydrogen and the globally significant Carbon Offsetting and Reduction Scheme for International Aviation, our vision seamlessly align with an extensive spectrum of governmental policies.
Incentives and schemes have been offered by the Government of India and the State Government of Karnataka, which provide
impetus to our operations, and which we benefit from, include the interest subvention scheme for enhancement and augmentation of Ethanol production capacity, long term Ethanol procurement policy, administered price mechanism, Production Linked Incentive (“PLI”) schemes, stamp duty exemption, reduction in Goods and Service Tax on Ethanol for the Ethanol Blended Petrol programme, use of multiple feedstocks for Ethanol production as well as key Ethanol blending targets.
OBJECTS OF ISSUE
1. Funding capital expenditure towards setting up multi-feed stock operations to pave- way for utilizing grains as an additional raw material in ethanol plants at TBL Unit 4 of 300 KLPD capacity.
2. Funding our working capital requirements.
3. General corporate purposes.
Qualitative Factors
1. Largest installed capacity for production of ethanol in India
2. Assured supply of key raw materials and utilities
3. Scalable and vertically integrated biofuels player
4. Advanced production infrastructure with a focus on technological innovation and sustainability
5. Well-positioned to capture favourable industry tailwinds
6. Entrenched customer relationships, creating a strong demand pipeline
7. Sound financial performance in a limited operating period, with headroom for growth
8. Skilled and experienced Promoters and management team, with committed employee base
Comparison of Accounting Ratios with Peer Group Companies
- Balrampur Chini Mills Ltd
- Triveni Engineering & Industries Ltd
- Dalmia Bharat Sugar & Industries Ltd
