Jagatjit Industries Begins Ethanol Production In Punjab

Jagatjit Industries, on Tuesday, said that it has started commercial production at its new ethanol facility in Hamira, Punjab's Kapurthala district. This is the firm's maiden foray into biofuels, an industry that's taking off as India picks up pace to mix petrol with ethanol to curb fossil fuel reliance.

The company said that this newly commissioned plant, with grains as raw material, can produce 200 kilolitres of ethanol daily. At full capacity, it's projected to churn out approximately 6.5 crore litres per year. The ethanol will be sold to oil marketing companies under the government's ethanol blending program, intended to reduce carbon emissions and help cleaner energy substitutes.

If all goes well, Jagatjit hopes the plant will bring in annual revenues of around Rs 550 crore. More significantly, the shift is expected to have a significant contribution towards the company's profitability, helping it boosts its EBITDA margins by as much as 8 to 10 percent. That could make a significant difference in its bottomline in the times to come.

The Promoter and Executive Director of the company, Roshini Sanah Jaiswal said that the ethanol project generates long-term value for Jagatjit.She explained how such a stable and dependable source of income will not merely make the company more financially resilient but also enable it to pursue its objectives of growing in the premium alcohol markets and exploring new business frontiers.

With ethanol giving strong returns and stable cash flows, it's now poised to be the cornerstone in Jagatjit Industries' future plan along with its existing liquor business and giving rise to new opportunities for sustainable growth.