BCL Industries expands Bhatinda ethanol plant capacity by 150 KLPD

BCL Industries has announced to have strengthened its position in India’s biofuel sector by commissioning a 150 KLPD ethanol capacity expansion at its Bathinda facility, Punjab. With this brownfield expansion, the company’s total distillery capacity at the site has increased to 550 KLPD, making it one of the largest grain-based distilleries in the country.

The company formally informed SEBI about the successful commissioning on July 13, 2026. Commenting on the development, Managing Director Rajinder Mittal stated that the expansion reinforces BCL Industries’ leadership in the ethanol segment. He said that the company’s commitment to supporting government’s biofuel initiatives, particularly the push towards higher ethanol blending in petrol.

The Bathinda expansion marks a substantial scale-up, increasing the plant’s capacity from 400 KLPD to 550 KLPD, reflecting a 37.5 percent rise. This enhancement is expected to strengthen the company’s ability to meet growing demand, especially from oil marketing companies (OMCs) and large private players such as Reliance Industries, with whom BCL has recently secured supply contracts.

The expansion aligns with India’s ambitious ethanol blending programme, particularly the accelerated E20 target, which aims to blend 20 percent ethanol with petrol. Industry analysts note that capacity additions such as this will be crucial in bridging supply gaps and ensuring consistent feedstock availability.

In terms of operational efficiency, BCL Industries continues to leverage sustainable practices. The Bathinda plant is supported by a 60 tonnes per hour biomass-fired boiler that uses paddy straw as fuel, significantly reducing energy costs while also addressing agricultural waste management.

Investor interest in the company’s biofuel transition is also gaining traction. Recent engagements with institutional investors, including high-conviction funds like Abakkus, reflect growing confidence in BCL’s long-term growth strategy centered on ethanol.

In 2026, BCL Industries earlier announced to have won a substantial ethanol supply orders of one lakh kilolitres from OMCs. Before that it had secured an ethanol supply order from Rajasthan State Ganganagar Sugar Mills Limited (RSGSM) for 59 lakh litres. The company also has plans to establish a 75 KLPD bio-diesel plant and an oil extraction unit at its Kharagpur facility.