The share price of EID Parry India rose nearly 3 percent on Wednesday as the board of directors approved setting up a 120 KLPD grain/sugar syrup/molasses based distillery at the company’s Sankili unit in Andhra Pradesh.
The existing capacity at the unit was 297 KLPD with a 90-95 percent capacity utilisation presently.
The proposed capacity is expected to be added by November 2022 and would entail an estimated investment of Rs 92.50 crore.
This capacity expansion plan comes on the back of the Indian government's announcement of an Ethanol Blending Programme of 20 percent by 2025. EID Parry intends to avail this opportunity by increasing its foray into ethanol production.
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“The proposed distillery will utilize sugarcane juice/syrup as its principal feedstock during the cane crushing season and grains like broken rice/maize/bajra during the off season for the manufacture of ethanol, which is expected to have an assured off take by the Oil Marketing Companies under a clear pricing mechanism,” said the Chennai-based company.
At 0936 IST, shares of EID Parry were trading 1.7 percent higher at Rs 410.90.
The company’s scrip has zoomed 98 percent in 3 years compared to Nifty500 index that jumped 50 percent during the same period.