India is steadily emerging as a global leader in renewable energy, and ethanol production is playing a significant role in this transformation. Ethanol, a clean and sustainable fuel, is not just helping reduce carbon emissions but also cutting down the country’s reliance on imported oil.

Did you know that India produced 1,380 million liters of ethanol in 2023, and this number is expected to double by 2025? With the Indian government pushing for a 20% ethanol blending target by 2025, the demand for ethanol is skyrocketing.

This growth has opened the doors for several companies to become pioneers in ethanol manufacturing, contributing to both environmental sustainability and economic development.

In this article, we’ll explore the top 10 ethanol manufacturing companies in India that are leading the charge in this green revolution, ensuring a cleaner future for the country while boosting the agricultural sector by utilizing sugarcane and other feedstocks efficiently. Let’s dive into the list!

How do ethanol manufacturing companies in India work

Sourcing Raw Materials: Ethanol manufacturing companies in India primarily use sugarcane molasses, a by-product of sugar production, as the main raw material. Some companies also use alternative feedstocks like maize, rice, and surplus grains for ethanol production.

Fermentation Process: The raw materials are processed and fermented using yeast to convert sugars into ethanol. This process produces an ethanol-rich solution, which is the core of the production process.

Distillation and Purification: The ethanol-rich solution undergoes distillation to separate ethanol from impurities. Advanced purification techniques are then used to achieve the desired concentration and quality of ethanol.

Blending with Fuels: The produced ethanol is often blended with petrol to create ethanol-blended fuels, such as E10 (10% ethanol) and E20 (20% ethanol). This blended fuel is distributed to oil companies to support the government’s ethanol-blending program.

Sustainability and Waste Management: Many companies focus on recycling and utilizing by-products like bagasse (used as biofuel) and vinasse (used as fertilizer), ensuring a sustainable and eco-friendly production process.

Future of ethanol manufacturing companies in India

Rising Demand for Ethanol Blending: With the Indian government’s goal of achieving 20% ethanol blending (E20) by 2025, the demand for ethanol is set to soar, offering huge growth potential for ethanol manufacturing companies.

Shift Towards Second-Generation (2G) Ethanol: Companies are increasingly investing in 2G ethanol production, which uses non-food biomass like agricultural residues. This shift will reduce dependence on sugarcane and enhance sustainability.

Boost from Green Energy Policies: Government initiatives such as Production-Linked Incentives (PLI) and subsidies for biofuel production are expected to drive investments in ethanol plants, fostering innovation and expansion.

Global Export Opportunities: As India scales up ethanol production, there is significant potential for exporting ethanol to international markets, further boosting the sector’s growth and revenue streams.

Integration with Circular Economy: Ethanol companies are likely to focus more on waste-to-energy solutions, utilizing agricultural waste and industrial by-products to maximize efficiency and contribute to a greener economy.

Top 10 Ethanol Manufacturing Companies in India

1. Dhampur Sugar

Ethanol manufacturing company in India - Dhampur Sugar

It is an integrated sugarcane processing corporation with its headquarters in India. Its activities include the production and distribution of ethanol, sugar, chemicals, and green energy. The business has been operating for just over nine decades. It has become one of the key participants in India’s sugar industry throughout time.

It can produce a significant amount of ethanol. It has a distillery capacity of 350 KLPD and a cane crushing capacity of 24,000 tonnes per day at the end of FY24. At the beginning of FY24, it increased the distillery’s capacity by 100 KLPD. 5.5 MW of the company’s 126.5 MW cogeneration capacity was put into service in FY24.

Additionally, it produces 14,000 cases of drinkable spirits and 140 MT of ethyl acetate daily.

2. Triveni Engineering & Industries

Ethanol Manufacturing Company in India - Triveni Engineering & Industries

It is among India’s biggest integrated producers of sugar. Additionally, it leads the market in a number of engineering sectors, including defense, water and wastewater treatment, and power transmission. The company owns two modern distilleries in Muzaffarnagar and one each in Sabitgarh, Milak Narayanpur, and Rani Nangal (RNG) in Uttar Pradesh, with a combined capacity of 860 KLPD, to produce ethanol.

These facilities can generate rectified spirit, denatured spirit, additional neutral alcohol, and ethanol. To make ethanol, a combination of grain and sugarcane-based feedstocks are used. Additionally, the company creates a co-product called dried distillers grain with solubles (DDGS), which is well-liked by the market and marketed to prestigious universities.

3. Dalmia Bharat Sugar

Ethanol Manufacturing Company in India - Dalmia Bharat Sugar

It is one of India’s top producers of sugar. In the state of Uttar Pradesh (UP), it is the largest producer of sugar. With five integrated plants—three in Uttar Pradesh and two in Maharashtra—the company can crush 35,500 TCD of cane and produce 700,000 MT of sugar annually.

It is the only business in India with production plants spread across two of the country’s non-contiguous states. If you’re exploring business ideas in India, this example highlights the potential for innovative ventures in diverse regions.

It produces top quality plantation white cane sugar of different grades using state-of-the-art sugar production technology, which has gained widespread market recognition. In the sugar sector, it is also a significant producer of green power. About 60 MW of the 118 MW of bagasse-based electricity produced by its sugar mills is sent to the grid.

4. Balrampur Chini Mills

Ethanol Manufacturing Company in India - Balrampur Chini Mills

It is among the biggest sugar companies in India. It produces and sells organic manure, molasses, bagasse, sugar, ethanol, and alcohol. It produces and sells power as well. The corporation currently operates in three segments: distillery, sugar, and other.

In Uttar Pradesh, it operates ten sugar mills with a combined capacity of 175.7 MW for cogeneration, 1,050 KLPD for distillation, and 80,000 tonnes of cane crushing per day.

The company has put four distilleries with a 560 KLPD production capacity into operation in Balrampur, Babhnan, Mankapur, and Gularia to produce ethanol. The majority of the distillery’s capacity is devoted to producing ethanol for mixing with gasoline. Oil marketing businesses receive this.

5. EID Parry

Ethanol Manufacturing Company in India - EID Parry

The business produces bioproducts and sugar. Organic spirulina, sanitizer, natural astaxanthin, pharmaceutical-grade sugar, jaggery, and refined sugar are now included in the portfolio. Additionally, it features a sugarcane and tissue culture research and development center dedicated to creating new and enhanced sugar cane varieties.

The seven sugar plants owned by the firm are dispersed throughout southern India. These facilities can crush 40,300 TCD of sugarcane, generate 140 MW of electricity, and produce 598 KLPD of distillation. In order to concentrate on the highly promising green energy sector, the company has increased the capacity of its plants to produce ethanol as part of its forward-looking strategy.

Suggested Read: Manufacturing Companies in India

6. Indian Sucrose

Ethanol Manufacturing Company in India - Indian Sucrose

Indian Sucrose Ltd. was established in 1990 and produces sugar and associated goods. The company specializes in making premium refined sugar and mostly works in northern India. Additionally, Indian Sucrose uses bagasse, a byproduct of processing sugarcane, to co-generate power.

The company’s main goals are to boost manufacturing capacity and improve operational efficiency. Indian Sucrose Ltd.’s stock price is Rs. 123.60, and its market capitalization is Rs. 210.78 cr. The 1-year return is 52.59%, and the PE ratio is 6.44.

7. SBEC Sugar

Ethanol Manufacturing Company in India - SBEC Sugar

Founded in 1991, SBEC Sugar Ltd. is a member of the UK-based SBEC Group and is involved in the production of sugar. The business specializes in turning sugarcane into premium refined sugar.

SBEC Sugar enhances sugar production through the application of modernized methods and technologies. Additionally, it generates by-products for distillery activities, including molasses.

8. Sir Shadi Lal Enterprises Ltd

Ethanol Manufacturing Company in India - Sir Shadi Lal Enterprises Ltd

Founded in 1933, Sir Shadi Lal Enterprises Ltd. is a company that works in the sugar sector and distilleries. In addition to producing a variety of sugar products, the company works in agriculture.

This Indian ethanol company, which mostly serves the northern Indian market, has a long history of producing sugar. As part of its distillery division, the company has extended its operations to include the production of alcohol.

9. Piccadily Agro Industries Ltd

Ethanol Manufacturing Company in India - Piccadily Agro Industries Ltd

Founded in 1994, Piccadily Agro Industries Ltd. is an agro-based company that specializes in the production of sugar and alcoholic drinks, especially Indian Made Foreign Liquor (IMFL). The business serves both home and foreign markets by operating a distillery and a sugar mill. Piccadily also uses bagasse, a byproduct of sugarcane, to generate electricity through cogeneration units.

10. haitan India Ltd

Ethanol Manufacturing Company in India - haitan India Ltd

Since its incorporation in 1936, Khaitan (India) Ltd. has operated distilleries and produced sugar. Sugarcane is the main raw material used by the ethanol firms in India to make sugar, molasses, and alcohol. The government’s demand for ethanol blending in fuels has led Khaitan, a long-standing player in the Indian sugar sector, to diversify its operations to include the manufacture of ethanol.

Conclusion

In conclusion, ethanol manufacturing companies in India are essential to the nation’s shift to greener and cleaner energy. These businesses are helping farmers and the economy by lowering India’s reliance on fossil fuels through their creative methods, economical use of resources, and involvement in the ethanol blending program.

These leading companies are establishing standards in sustainability and innovation as the need for biofuels keeps growing. By aligning with the government’s vision for a carbon-neutral future, they are helping India take a giant leap toward energy security and environmental conservation. These businesses are creating the foundation for a more promising and environmentally friendly future by using cutting-edge technologies or growing their capabilities.

FAQ

How does ethanol benefit Indian farmers?

Ethanol production provides farmers with an additional revenue stream by utilizing sugarcane, molasses, and surplus grains. This ensures better income for farmers and reduces wastage of agricultural produce.

Are ethanol manufacturing companies in India eco-friendly?

Yes, most ethanol manufacturing companies focus on sustainable production practices. They use by-products like bagasse and vinasse for energy and fertilizers, minimizing waste and contributing to a circular economy.

Which are the top feedstocks used in ethanol production in India?

The primary feedstocks used in India include sugarcane molasses, maize, rice, and surplus food grains. The industry is also moving toward using agricultural waste and non-food biomass through second-generation ethanol production.