Barwaha, Madhya Pradesh – In a significant move towards sustainable energy solutions, Associated Alcohols & Breweries Ltd (AABL) proudly announces the commencement of commercial production at its cutting-edge Ethanol plant, situated in Barwaha, Madhya Pradesh. With a substantial investment of approximately INR 150 crore, the state-of-the-art plant boasts a capacity of 130 KLPD and underscores AABL’s dedication to clean and eco-friendly practices.
Associated Alcohols & Breweries is engaged in the business of manufacturing and bottling of alcoholic beverages. It manufactures extra neutral alcohol (ENA), Indian Liquor, whiskey, rum, and many more. Some of the brands manufactured by the company are McDowell’s, Black & White Scotch whiskey, VT 69 Scotch, etc.
The grain-based ethanol facility is equipped with advanced technology, allowing it to process diverse feedstocks efficiently. A noteworthy addition to the plant is a versatile boiler capable of utilizing various fuels, including coal, husk, and briquettes, enhancing operational efficiency and showcasing AABL’s commitment to overall performance improvement.
Prasann Kumar Kedia, the Managing Director of AABL, expressed enthusiasm about reaching this milestone and emphasized the company’s commitment to sustainable energy. Kedia highlighted the plant’s role as a supplier of high-quality Extra Neutral Alcohol (ENA) for AABL’s Indian Made Foreign Liquor (IMFL) products and other bottlers, aligning seamlessly with the company’s existing portfolio.
Financially, AABL has reported robust performance for the first half of FY24, with a revenue of INR 3,266 million and an EBITDA of INR 379 million, reflecting a YoY growth of 21.9%. With a net debt-to-equity ratio of 0.04x as of H1 FY24, the company maintains a strong and stable balance sheet.
The Ethanol plant has already secured orders from Oil Marketing Companies (“OMCs”) for supply until April 2024, with a billing rate aligned with the revised rate of maize-based ethanol set by OMCs at INR. 71.86. Kedia acknowledged potential challenges during the initial phases but expressed confidence in the team’s ability to address them swiftly.
As AABL embarks on this exciting journey towards a greener and more sustainable future, Kedia extended gratitude to stakeholders and the community for their unwavering support. The Ethanol plant’s initiation represents a crucial stride for AABL, reinforcing its position as a key player in the alcohol beverage industry committed to environmental responsibility.
