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  TOWARDS ETHANOL

Ethanol, a by-product of the sugar industry, is a good oxygenate and, when used as a blend with motor spirit, substantially reduces vehicular emissions and the resultant pollution. With the increasing demand for this by-product, we are looking at ethanol production as one of the major thrust areas for future. Our 30 KL per day of industrial alcohol unit had commenced production in February 2005.

In the year 2009-2010 , we generated revenue of Rs. 799.83 lacs through this business. In the year 2010-2011, the Company had produced and sold Spirit in place of ethanol to get the maximum benefit from its distillery plant. The Company had sold 44.51 Lacs Liters Spirit for a value of Rs 1183.28 Lacs.

Ethanol is one of the additives in petrol. The mixing of ethanol with petrol has been made mandatory in nine states including the state of Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra etc. The government of India is keen to increase the mixing percentage from 5% to 10% and that too in all states of India. According to a report by HDFC Securities, ethanol is set to become a stable revenue stream for the sugar industry because the global trend of using greater percentage of ethanol in petroleum will catch up in India.

How alcohol is produced:

Molasses, one of the by-products in sugar industry is a dark, viscous by-product and has nearly 45-50% of fermentable sugar. In a distillery sugar from molasses is fermented, distilled to manufacture industrial alcohol. The industrial alcohol in turn can further be used for manufacture of IMFL and Country Liquor.

With certain add-on facilities the industrial alcohol can be further refined to produce absolute alcohol or gasohol, an eco-friendly substitute for fuel to be used in petrol driven vehicles. The use of gasohol as substitute for fuel offers exciting opportunity to conserve the scarce foreign exchange reserves of the country.
 
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