It has also commenced production of Refined Grade Sugar, meeting the specifications as prescribed in IS 1151, 2021 version.
The recent decision by Government to lower the GST rate to 5% from 18% on ethanol meant for blending under the Ethanol Blended Petrol (EBP) programme would be extremely beneficial for Sugar companies and Vishwaraj would also be one of them. Due to this the profitability and revenues would rise substantially.
Earlier, Vishwaraj Sugar Industries (VSIL) had entered into contracts with oil marketing companies (OMC) namely Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL) for supply of 2.50 crore liters of ethanol worth Rs155cr commencing from December 2021.
“We have entered into contracts with oil marketing companies (OMC) namely BPCL, IOC and HPCL for supply of 2.50 crore liters of ethanol commencing from December 2021 as against the supply of 2.25 crore liters of ethanol last year,” VSIL Executive Director Mukesh Kumar said.
With the higher ethanol supply and increasing sugar production, Vishwaraj Sugar aims to clock a turnover of Rs500cr in March 2022 as against Rs426cr last year.
The company is expanding it’s a distillery unit by 150 KLPD capacity at an estimated cost of Rs150cr at Belgaum district in Karnataka after the expansion total Ethanol capacity with the company will be 250 KLPD, the environment clearance for the same is expected to be received by February 2022.
The company has also drawn up Rs250cr expansion plans for setting up of greenfield sugar factory along with a distillery facility in Karnataka.
Vishwaraj Sugar Industries is an integrated sugar company producing sugar, power and ethanol. The company manufactures Distillery products like Rectified Spirit, Anhydrous Ethanol and Extra-Neutral Spirit from molasses and Sugar Syrup.
The above news was originally posted on www.indiainfoline.com
