India Glycols has secured a substantial order valued at Rs 1,164 crore for the supply of ethanol to oil marketing companies (OMCs), aligning with India’s enthusiasm for ethanol blending in petrol. The company disclosed this recent development through a regulatory filing.
According to the details provided by India Glycols, the agreement encompasses the delivery of 16.6 crore litres of ethanol throughout the supply year, which commenced on November 1. The overall supply commitment from India Glycols involves 12.8 crore litres destined for oil marketing companies such as Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOCL), and Hindustan Petroleum Corporation (HPCL). Additionally, 3.8 crore litres will be supplied to oil companies Reliance Industries and Nayara Energy, as stated by India Glycols.
India Glycols said that the estimated value of the ethanol supply to the three major oil marketing companies is Rs 896 crore, while the supply to oil companies Reliance Industries and Nayara Energy is valued at Rs 268 crore.
In response to these positive developments, shares of India Glycols witnessed a notable increase, surging by up to 11% to Rs 780.7 per share on the Bombay Stock Exchange (BSE). India Glycols, a manufacturer of various products, including chemicals, spirits, industrial gases, and sugar, continues to experience growth amid these favorable market dynamics.
Recently, Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, announced plans for 20 percent ethanol blended petrol (E20) to be available nationwide by 2025. The trajectory of ethanol blending in petrol has shown significant growth, increasing from 38 crore litres in 2013-14 to 433 crore litres in 2021-22, although the current ethanol blending rate stands at about 12% in India.
A recent study conducted by BlueWave Consulting indicates that the India ethanol market reached an estimated size of USD 2.27 billion in 2022. Projections for the period between 2023 and 2029 forecast a Compound Annual Growth Rate (CAGR) of 9.16%, leading to a market value of USD 4.15 billion by 2029. Key players in the India ethanol market include United Breweries, Aventine Renewable Energy, AB Miller, Archer Daniels Midland Company, Kirin, Pure Energy Inc., and Cargill Corporation.
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