Uttam Sugar Mills Ltd is set to turbocharge its ethanol production with a major expansion of its distillery capacity. The company has announced a ₹1.10 billion investment to scale up its grain-based distillery in Haridwar, Uttarakhand, from 40 KLPD to 160 KLPD. This strategic move aligns with India’s push for ethanol blending and signals Uttam’s commitment to sustainable growth and energy diversification.
Project Scope
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Expansion of grain-based distillery capacity from 40 KLPD to 160 KLPD.
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Co-generation power capacity to be doubled from 3.0 MW to 6.0 MW.
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Location: Ahmadpur Grant, Bahadrabad Block, Haridwar District, Uttarakhand.
Investment Details
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Total estimated investment: ₹1.10 billion (₹1,040 million).
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Construction timeline: November 2024 to July 2025.
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Awaiting environmental clearance from the Ministry of Environment as of May 2024.
Strategic Impact
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Supports India’s ethanol blending program and energy independence goals.
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Enhances Uttam’s integrated operations across sugar, cogeneration, and distillery segments.
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Expected to improve profitability and operational efficiency.
Financial Outlook
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CARE Ratings upgraded Uttam Sugar Mills’ long-term rating to “CARE A; Stable” and short-term to “CARE A1”.
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Improved earnings profile and strong sugar realizations expected to support financial metrics.
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Liquidity backed by ₹630 crore in unsold inventory as of June 2025.
Industry Context
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Expansion comes amid rising demand for ethanol and government incentives for biofuel production.
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Reflects broader industry trend toward green energy and circular economy models.
Sources: New Projects Tracker, CARE Ratings Report