Davangere Sugar aims to expand ethanol capacity to 85 KLPD

Bengaluru headquartered Davangere Sugar Company Ltd (DSCL) is set to scale up its ethanol production capacity from the current 65 kilo litres per day (KLPD) to 85 KLPD by the end of this fiscal. The company also has a phased plan to further raise capacity to 110 KLPD, in line with the government’s ethanol blending programme.

As part of this expansion, DSCL will commission a 35-tonne-per-day CO₂ recovery plant, enhancing both efficiency and sustainability. To ensure a steady feedstock supply and year-round operations, the company intends to diversify its procurement base by sourcing broken rice and maize, alongside sugarcane.

On the agricultural front, DSCL is intensifying farmer engagement. The company plans to expand cane cultivation by 15,000 acres in 2025, while rolling out several farmer-centric initiatives, including mechanised harvesting systems to lower labour costs and improve productivity. It would also begin organised cane transport solutions to streamline logistics and ensure timely deliveries. Moreover, subsidies and performance-linked incentives will be started to boost farmer incomes and strengthen partnerships.

These initiatives are expected to help DSCL consistently cross 5 lakh tonnes of cane crushing in the coming years, creating a multiplier effect across its sugar, ethanol, and power businesses.

Ganesh Shivashankarappa Shamanur, Chairman & Managing Director of DSCL, said the company’s growth model rests on four pillars—ethanol capacity expansion, aggressive grain procurement, higher cane cultivation, and farmer-first initiatives. “With these measures, we aim to strengthen revenues, profitability, and long-term shareholder value,” he noted.

The company emphasised that its zero-waste, integrated operations ensure optimum utilisation of every input, from cane to grain, driving both environmental sustainability and rural prosperity.

With strong policy support and rising demand in the biofuel segment, DSCL believes it is well-positioned to capture new market opportunities while reinforcing its commitment to rural development and sustainable growth.