Uttam Distilleries to increase production capacity to 160 KLPD

Uttam Distilleries Limited (UDL), a subsidiary company of Uttam Sugar Mills, has secured board approval to expand its distillery operations from 40 KLPD (kilolitres per day) to 160 KLPD. The upgradation project will add 120 KLPD to the existing setup, taking the company’s total capacity to 160 KLPD by March 2027.

Currently, UDL’s distillery is running at 95% utilisation, underscoring the need for additional capacity. The proposed expansion involves an investment of Rs 110 crore, which will be funded through internal accruals, promoter contributions and borrowings.

The company stated that the move aligns with the Government of India’s ethanol blending programme, a key initiative aimed at reducing crude oil imports and promoting cleaner energy alternatives. With ethanol demand on the rise, UDL expects the expansion to strengthen its position in the growing biofuel sector.

The announcement has been made in accordance with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, and recent circulars issued in November and December 2024 regarding disclosures for capacity expansion projects.

The Ethanol Blended Petrol (EBP) Programme

India’s Ethanol Program, or Ethanol Blended Petrol (EBP) Programme, promotes blending locally produced ethanol with petrol to achieve energy security, reduce oil imports, and benefit the rural economy. The program, guided by the National Policy on Biofuels, aims to meet a 20% blending target by 2025–26 and has already achieved this goal, with various initiatives like an administered price mechanism, a reduced GST on ethanol, and increased domestic production of ethanol from diverse feedstocks including sugarcane, maize, and surplus FCI rice.