Croissance Ltd has taken a decisive step toward entering India’s fast-growing bio-energy sector by securing a 36-year lease on 120 acres of land in Mysuru, Karnataka. The company plans to utilize this land for establishing a large-scale ethanol production facility, aligning with national energy goals and leveraging Karnataka’s progressive biofuel policies.
This strategic move marks a significant pivot for Croissance, which has historically operated in niche industrial segments but now aims to capitalize on the government’s push for sustainable energy and ethanol blending.
Key Development Highlights
Croissance Ltd has identified and secured 120 acres of land in Mysuru under a long-term 36-year lease agreement
The land will be used to set up an integrated bio-energy facility focused on ethanol production from agricultural residues and non-edible biomass
The project is expected to benefit from Karnataka’s biofuel incentives, including capital subsidies, tax exemptions, and infrastructure support
Strategic Rationale and Sectoral Context
Alignment with National Ethanol Goals
India’s Ethanol Blended Petrol (EBP) program targets 20 percent blending by 2025, creating massive demand for domestic ethanol production
Croissance’s entry into this space supports the national agenda to reduce crude oil imports and carbon emissions
The company plans to produce second-generation (2G) ethanol using agricultural waste, which qualifies for additional government incentives
Karnataka’s Biofuel Push
Karnataka is a pioneer in biofuel policy, with its 2025–26 roadmap offering fiscal and regulatory support for ethanol and biodiesel ventures
The Karnataka State Bioenergy Development Board has actively promoted investment in biofuels, including collaborations with German universities and technology providers2
Mysuru, with its proximity to sugarcane belts and agro-industrial clusters, offers logistical advantages for feedstock sourcing and distribution
Operational Blueprint and Land Utilization
The 120-acre site will house ethanol distillation units, biomass preprocessing facilities, effluent treatment systems, and storage infrastructure
Croissance is expected to adopt modular plant design to allow phased capacity expansion over the next decade
The company will also explore co-generation of power using biomass, enhancing energy efficiency and revenue diversification
Financial and Corporate Implications
Croissance Ltd’s market cap stands at ₹17.7 crore, with recent financials showing muted growth and declining sales
The ethanol project is seen as a turnaround initiative, potentially unlocking new revenue streams and improving asset utilization
Analysts expect the venture to attract strategic investors or joint venture partners, especially given the capital-intensive nature of biofuel infrastructure
Environmental and Social Impact
The project is expected to generate over 150 direct jobs and 300 indirect employment opportunities in the Mysuru region
Ethanol production from waste biomass will reduce stubble burning and improve air quality, aligning with India’s climate goals
Croissance plans to collaborate with local farmers and cooperatives for feedstock procurement, fostering rural economic development
Risks and Execution Challenges
Regulatory approvals, feedstock availability, and technology integration remain key execution risks
Croissance’s limited track record in large-scale manufacturing may require external expertise and partnerships
The company must ensure compliance with pollution control norms and sustainability benchmarks to retain policy benefits
Forward Outlook
Croissance aims to commission Phase I of the ethanol facility by Q3 FY27, with initial capacity targeting 50 kiloliters per day
The company is exploring additional land parcels in Karnataka and Maharashtra for future expansion
With the ethanol market poised for exponential growth, Croissance’s Mysuru project could become a cornerstone of its long-term transformation strategy
Sources: Screener.in, AdvanceBiofuel.in, Star of Mysore, Times of India Mysuru Edition
