Modi Naturals gets Rs 240 cr ethanol supply order from bunch of OMCs

Modi Naturals Ltd. has announced that it has received a significant order, facilitated by its wholly-owned subsidiary, Modi Biotech Private Limited (MBPL), for the supply of 3.72 crore litres of ethanol. The order is valued at approximately Rs 240 Crores and has been secured from various Oil Manufacturing Companies (OMCs). The OMCs would include Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).

Aligned with the Ethanol Sugar Year (ESY) schedule spanning November 2023 to October 2024, the supply will be executed in four phases. In addition to meeting ethanol demands, Modi Naturals plans to separately sell the by-products generated during the production process, contributing to supplementary revenues.

Modi Naturals maintains that the cumulative volume of 3.72 Crore Litres, combined with the revenue generated from by-products, anticipates a substantial Total Revenue potential of 275 Crores.

Akshay Modi, Managing Director of Modi Naturals, said on the development, “We are extremely happy with the successful commissioning of our ethanol facility and the progress achieved thus far. This latest order marks a transformative moment for Modi Naturals, promising positive impacts on our balance sheet. Our immediate focus is on stabilizing plant production in the coming weeks, paving the way for Phase II expansion to maximize the facility’s full capacity.”

Modi Natural said that the order underscores company’s dedication to the renewable energy landscape and its active involvement in the national mission of Ethanol Blended Petrol (EBP). Recently inaugurated in Raipur, Chhattisgarh, the state-of-the-art ethanol distillery boasts a robust production capacity of 210 KLD and a 5.5 MW cogeneration power plant. The facility, with a planned operation at 130 KLD in the first phase, involves a capital expenditure of INR 150 crores with a debt of INR 105 crores.

With a legacy spanning four decades, Modi Biotech Private Limited (MBPL) and its parent company, Modi Naturals Ltd., have effectively managed numerous enterprises and projects. To ensure the smooth construction and commissioning of the BioTech Plant, MBPL collaborated with industry specialists, including consultants, plant suppliers, and an experienced in-house staff.