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Jagatjit Industries Begins Production at 200 KLPD Ethanol Plant in Punjab, Eyes ₹400 Crore Revenue Boost


Updated: July 18, 2025 11:11

Image Source: The Economic Times
Jagatjit Industries Ltd has officially commenced operations at its 200 KLPD grain-based ethanol distillery in Hamira, Kapurthala district, Punjab. The facility, spread across 25 acres, marks a strategic pivot toward green energy and is expected to contribute significantly to the company’s topline and EBITDA from its first year of operation.
 
Key Highlights:
  • The plant will produce ethanol for blending with petrol, aligning with India’s national ethanol blending targets.
  • Initial production will utilize locally sourced grain, with plans to scale up using imported feedstock as needed.
  • The facility is projected to generate ₹400 crore in annual revenue with EBITDA margins of approximately 15 percent.
Strategic Context:
  • The ₹210 crore investment was funded through a ₹180 crore term loan from IREDA and ₹30 crore from internal accruals.
  • The ethanol business is expected to contribute 20 percent of total revenue in FY26, rising to 25 percent in FY27.
  • Positive cash flows from the plant will be reinvested into Jagatjit’s core IMFL business and used to reduce debt.
Market Outlook:
  • The commissioning supports India’s goal of achieving 20 percent ethanol blending by 2025, reducing crude oil imports.
  • The plant is expected to create local employment and stimulate ancillary industries in the region.
  • Analysts view the move as a transformative step for Jagatjit, diversifying its revenue base and enhancing sustainability credentials.
Sources: Economic Times, The Hindu BusinessLine, India Infoline, ChiniMandi, Jagatjit Industries BSE Filings (July 2025)

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