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Ethanol stock jumps after completion of sugar plant capacity expansion in UP

The ethanol industry in India is expanding rapidly, driven by its crucial role in reducing carbon emissions and enhancing energy security. Ethanol, a biofuel derived primarily from sugarcane and other crops, is blended with petrol to reduce dependency on fossil fuels.

This industry supports multiple sectors, including agriculture and energy, while providing a renewable energy alternative. Ethanol blending also helps stabilize sugar prices by utilizing excess production. With rising global interest in sustainable fuels, India’s ethanol industry is positioned as a key player in the transition to cleaner energy sources.

Share Price

The Shares of DCM Shriram are trading at Rs.1351 up 2.2% from its previous close of Rs. 1321.7 as of 12:56 p.m. on Tuesday, November 19, 2024. Additionally, the stock has given fabulous returns of close to 30% in November by rising from Rs. 1,048 to Rs. 1,351.

Government’s Push for Ethanol Adoption  

The Indian government is actively promoting ethanol blending to achieve its environmental and energy goals. It has advanced the target for a 20% ethanol blend in petrol from 2030 to 2025 under the National Bioenergy Programme. Policies like higher procurement prices for ethanol, subsidies for production infrastructure, and soft loans to sugar mills are driving growth.

Additionally, ethanol reduces crude oil imports, saving foreign exchange and supporting the “Atmanirbhar Bharat” initiative. This strategic push not only strengthens energy independence but also benefits farmers by creating a steady demand for feedstock, particularly sugarcane and grains.

Recent Updates

The management has announced the successful completion of the expansion of the sugar plant at their Loni Unit, Uttar Pradesh. The cane crushing capacity has been increased from 7,300 TCD (Tonnes of Cane Crushing per Day) to 9,400 TCD (Tonnes of Cane Crushing per Day), as of November 19, 2024.

This 2,100 TCD capacity expansion will strengthen their ability to process additional sugarcane from the catchment area, ensuring optimized utilization of resources and capturing growth opportunities in the region.

About the Company

DCM Shriram, part of the renowned DCM Group founded by Sir Shri Ram, is a diversified company with manufacturing facilities for fertilizers, chloro-vinyl, and cement in Kota, Rajasthan, and chlor-alkali in Bharuch, Gujarat.

The DCM Group is a prominent industrial empire, that has a legacy of producing a wide range of goods, including textiles, sugar, chemicals, vanaspati, pottery, fans, sewing machines, electric motors, and capacitors. With a strong focus on industrial growth and innovation, DCM Shriram continues to play a significant role in India’s manufacturing sector, leveraging its rich heritage and expertise to drive sustainable and diversified development.

Sugar Times Team
Sugar Times Teamhttps://www.sugartimes.co.in
The Sugar Times Editorial Team is a group of experienced journalists, analysts, and industry experts dedicated to providing in-depth coverage and insights on the global sugar industry. With years of experience in agriculture, trade, sustainability, and market trends, the team brings a wealth of knowledge and expertise to every article they produce.Focused on delivering accurate, timely, and relevant news, the Sugar Times Editorial Team aims to keep industry professionals, stakeholders, and enthusiasts informed on key developments in sugar production, trade policies, innovations, and sustainable practices. Their collective goal is to help readers navigate the complexities of the sugar sector and stay ahead of emerging trends shaping the future of the industry.You may submit your article on info@sugartimes.co.in if you have valuable contributions for the industry readers.
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