UTTAR PRADESH: State gets Rs 1000+ crore investment in ethanol, distillation

Uttar Pradesh is attracting more than Rs 1,000 crore in private investment in the ethanol and distillery supply chain, strengthening the state’s position as a major sugarcane and ethanol-producing hub.

Companies including United Breweries, Allied Blenders and Distillers (ABD), Mount Everest Breweries and Woodpecker Greenagri Nutrients are expanding their manufacturing and distillery operations across the state.

United Breweries is setting up a manufacturing unit in Unnao, while Mount Everest Breweries is establishing a facility in Hardoi. Woodpecker Greenagri Nutrients has already commissioned a unit in Farrukhabad.

ABD is investing Rs 600 crore to expand its presence in Uttar Pradesh, including a greenfield distillery expected to be commissioned within the next 24 months. Its bottling unit in Moradabad is also expected to become operational in the coming months.

ABD Managing Director Amar Sinha has held that Uttar Pradesh has a progressive excise policy, supported by a conducive business environment for long-term investment and these excise-friendly policies have contributed to a significant growth in the market potential.

The fresh investments come as ethanol production in the state continues to grow. Uttar Pradesh produced 1.8 billion litres of ethanol in 2023-24, which rose to more than 2.23 billion litres in 2024-25, registering a 23% year-on-year increase.

The state has also reported strong growth in excise exports. Between April and June 2026, excise exports reached $12.78 million, up from $8.79 million in the same period last year, marking an increase of more than 45%.

UP’s share of India’s total excise exports increased from 10.2% to 12.6%, placing the state third after Maharashtra and Punjab.

Excise Minister Nitin Agarwal said the state’s three-year Excise Export Policy 2026-29 is strengthening the sugarcane value chain by covering activities from sugarcane and molasses processing to packaging, storage and transportation.

Between April and July 2026, distillers in the state supplied 16.4 million additional bottles to other states, up 45.7% from the corresponding period last year.