Associated Alcohols & Breweries launches new ethanol plant in Madhya Pradesh

In a significant development for India’s alco-beverage industry, Associated Alcohols & Breweries Limited (AABL) has announced the commencement of commercial production at its new ethanol plant situated near Indore, Madhya Pradesh. This state-of-the-art facility, set up with an investment of approximately Rs. 150 Cr, marks a major step forward in AABL’s commitment to clean energy solutions.

The new ethanol plant, boasting a capacity of 130 KLPD, is a grain-based ethanol facility capable of processing various feedstocks. It is equipped with advanced technology, underlining AABL’s focus on eco-friendly practices. The strategic addition of a boiler capable of utilizing diverse fuels, including coal, husk, and briquettes, aims to improve operational efficiency and overall performance. This ethanol plant complements AABL’s existing portfolio as a supplier of high-quality Extra Neutral Alcohol (ENA) for its Indian Made Foreign Liquor (IMFL) products and to other bottlers.

Associated Alcohols & Breweries has reported a revenue of Rs 3,266 million for H1 FY24 with an EBITDA of Rs 379 million, indicating a significant growth of 21.9% year-over-year. The company also maintains a robust balance sheet with a net debt-to-equity ratio of 0.04x as of H1FY24.

Prasann Kumar Kedia, Managing Director of Associated Alcohols & Breweries, expressed his enthusiasm for this new venture, stating, “The commencement of our Ethanol plant is a testament to our dedication to sustainable energy.” He highlighted the orders already received from Oil Marketing Companies (OMCs) for supply until April 2024. The OMCs have recently revised the rate of maize-based ethanol to Rs. 71.86, and AABL is billing ethanol to OMCs at this revised rate.

This development in sustainable energy is not only a significant achievement for Associated Alcohols & Breweries but also a contribution to India’s growing focus on clean and renewable energy sources. The new ethanol plant in Barwaha is poised to play a vital role in meeting the increasing demand for sustainable fuel alternatives, further solidifying AABL’s position as a leader in the alco-beverage industry with a strong commitment to environmental stewardship.