EID Parry chalks out expansion plans to tap ethanol

: Murugappa Group company EID Parry has chalked out plans to tap ethanol production at its facilities.

The company has obtained in-principle approval from the Department of Food and Public distribution, for its expansion under the central government scheme, extending financial assistance to mills for enhancement and augmentation of Ethanol production capacity, EID Parry said.

The city-based company in its annual report said it has secured permission from the Tamil Nadu government to convert six lakh litres of impure spirit to Ethanol at Nellikuppam and three lakh litres of impure alcohol to Ethanol at Sivaganga in the State.

The company's Sankili unit (Srikakulam) has started the production of Ethanol from B Heavy molasses for the first time, during the year 2018-19, with a total output of 91.95 LL of ethanol.

The company said its Sivaganga unit produced Ethanol for the first time with an output of 7.40 LL.

Stating that the three major oil marketing companies have released tenders for supply of 329 crore litres of Ethanol between December 1, 2018 and November 30, 2019, it includes 66 crore litres planned for sourcing from B heavy molasses, sugarcane juice and damaged food grains, the report said.

On the sugar business which contributes 72 per cent of the total revenues, the company said, due to the continuous non-availability of sugarcane forced the company to close its factory in Puducherry which had remained idle during the last four years.

"For the year 2018-19, the sugarcane availability in Tamil Nadu was low, due to widespread drought affecting a major section of the command area, however, the cane crushed was better than previous year," it said.

There was a considerable decline in the cane production during the last few years due to deficit rainfall and farmers shifting to other crops.

"This has adversely affected the company's Tamil Nadu operations, where most of its plant capacity continued to remain idle," it said.

The overall cane crushed by the company as a whole, was at 37.19 LMT as against 36.72 LMT in the previous year, it said.

Holding that sustained availability of cane was being a major concern, the report said the company has taken up initiatives including supply of clean seed, providing resources for drip and micro irrigation.

The company was also working closely with the Tamil Nadu government on a number of schemes to promote drip irrigation, sustainable sugar initiative.

It has also embarked on a programme of ensuring clean seed for planting which was expected to pave the way for yield improvement and ensure sustained sugarcane availability.

The company said despite the various policies and incentives by the state government, unless the surplus stock was cleared from the country, the scenario may not undergo any significant change.

It is expected that the pressure on the sugar price would continue to remain given the over-supply scenario, it said.

Sugar segment constituted the largest share of the company's revenue by 72 per cent in 2018-19.

Revenues from the sugar during 2018-19 was at Rs 1,390 crore as against Rs 1,491 crore in 2017-18, it said.