Grainspan to invest Rs. 520 cr in twin ethanol projects in Gujarat

Grainspan Nutrients plans to significant strides in India’s renewable energy sector by investing Rs 520 crore in two grain-based ethanol projects in Gujarat. This is expected to be a major contribution to the country’s Ethanol Blending Programme (EBP).

Manoj Khandelwal, CEO of Grainspan, held “India has enormous potential in ethanol production, including future opportunities for exports.”

The first plant of Grainspan, commissioned in May 2023 at Bhamsara village near Ahmedabad, holds the distinction of being Gujarat’s first grain-based ethanol production unit. Built at a cost of Rs. 120 crore with financial assistance under the Union Food Ministry’s interest subsidy scheme, the facility has a capacity of 110 kilolitres per day (KLPD). It utilizes maize and rice as feedstock and supplies ethanol to India’s oil marketing companies, supporting the national push toward cleaner fuel alternatives.

Building on the success of its initial project, Grainspan commissioned a second, larger facility last month at the same site. With a production capacity of 240 KLPD, the new unit was set up at an investment of Rs. 360 crore—this time without availing of any subsidy support. The move reflects the company’s growing confidence and commitment to India’s ethanol economy.

Innovation in Sustainability

Established in 2014 as a manufacturer of food ingredients, Grainspan has rapidly diversified its portfolio to include biofuels. This strategic shift has paid off—the company reported a turnover of Rs. 760 crore in the last fiscal year, buoyed in part by its foray into ethanol production.

Both ethanol plants are now fully operational, confirmed CFO Pankit Shah, underscoring the company’s role in driving India’s clean energy transition through continued innovation and robust investment.