Triveni to commission new distillery in Uttar Pradesh

Triveni Engineering & Industries Ltd, a prominent sugar manufacturer headquartered in Uttar Pradesh, has announced the forthcoming commissioning of a new dual-feed distillery in Rani Nangal, Uttar Pradesh. Additionally, the company disclosed that it has postponed its plans for expanding the distillery capacity to 250 kilo litres per day (KLPD) at Sabitgarh.

In a strategic move, Triveni also unveiled its entry into the Indian Made Foreign Liquor (IMFL) manufacturing segment, slated to commence operations between April and June of the upcoming fiscal year. Tarun Sawhney, Vice Chairman and Managing Director of Triveni Engineering & Industries, stated that with this commissioning, company’s total distillation capacity will be raised to 860 KLPD.

Triveni also released its financial results for the October-December 2023 period, revealing a 6.7 percent decrease in net profit to ₹137.4 crore compared to ₹147.3 crore in the corresponding period of the previous year. Despite a 2.5 percent rise in gross revenue to ₹4,603.3 crore for the nine months ending on December 31 in the current fiscal year, the net profit plummeted by 85 percent to ₹234.1 crore.

Triveni expressed satisfaction with its performance given prevailing market conditions, highlighting the success of its Sugar business and power transmission sector. Sawhney noted that the company’s sugar inventory as of December 31, 2023, was 29.63 lakh quintal, up from over 23 lakh quintals in the previous year, with higher price points.

Regarding the decision to defer the distillery expansion at Sabitgarh, the company attributed it to existing government policies and challenges in sourcing permitted grains at feasible procurement costs.

Regarding the distillery business, Triveni Vice-CMD disclosed that in Q3 of financial year 2024, the company sold 44,313 KL of alcohol, with ethanol accounting for 92 percent of sales. Among the total alcohol sales, 73 percent originated from sugarcane-based feedstock (molasses and juice/syrup), while 27 percent came from grain-based feedstock.

Triveni also anticipates a shift towards grain-based feedstock in the future, with the upcoming unit at Rani Nangal slated to utilize maize in the next fiscal year.