India is making notable strides in securing its energy future by adopting sustainable practices such as ethanol blending. As the world’s 3rd largest energy consumer, the country has long relied on oil imports to meet its increasing energy needs. This dependence not only threatens energy security but also results in a significant outflow of foreign currency. However, ethanol blending presents a promising opportunity for India to reduce its reliance on imported oil while simultaneously tackling environmental challenges. In this blog, let us look at the best ethanol stocks in India for January 2025:
India’s industrial ethanol production capacity stood at 13.80 billion litres (BL) as of April 2024, with 8.75 BL from molasses and 5.05 BL from grain-based feedstocks. To meet its 20% blending target by 2025, the Indian government successfully achieved 12% ethanol blending in FY 2024. Maharashtra is the leading producer, generating 2.68 BL annually, followed by Uttar Pradesh and Karnataka at 2.08 BL and 1.18 BL, respectively. The dominance of these states in ethanol production is due to their ample supply of feedstock.
| Name | Market Cap (in ₹ crore.) | 5 yr CAGR (%) |
| Piccadily Agro Industries Ltd | 8,732.04 | 163.40 |
| Triveni Engineering & Industries Limited | 10,021.24 | 47.74 |
| Shree Renuka Sugars | 8,528.86 | 40.00 |
| Bajaj Hindusthan Sugar Ltd | 3,967.05 | 37.19 |
| EID Parry (India) | 16,305.11 | 35.35 |
Note: The above Ethanol Sector stocks have been selected and sorted based on 5Y-CAGR and market capitalisation of a minimum ₹2,000 Crore as of December 24, 2024.
Piccadilly Agro Industries Ltd (PAIL) commenced its commercial operations as a sugar processing company and has since expanded its operations to include the manufacturing of sugar and distillery products at its facility in Haryana. As of November 2024, the company boasts an ethanol production capacity of 78 KLPD. Additionally, PAIL operates India’s largest independent malt warehousing facility, with a capacity of over 45,000 barrels and the ability to store more than 10 million liters of spirit.
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As a prominent player in the Indian market, Triveni Engineering and Industries Ltd excels in sugar and ethanol production, the manufacturing of custom-engineered turbo gearboxes, and the water and wastewater management sector. In Q2 FY25 and H1 FY25, ethanol represented 93% and 92% of total alcohol sales, compared to 94% and 93% in the corresponding periods of the previous year.
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Shree Renuka Sugars Ltd (SRSL), founded in 1995, is a leading producer of refined sugar, ethanol, and ethyl alcohol, with a focus on electricity generation and distribution. The company has reported robust financial results, with a 52% growth in consolidated EBITDA for H1 FY25. The recent relaxation of the ban on ethanol production from CJ and BH molasses signals favourable prospects for the upcoming season.
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Bajaj Hindusthan Sugar Limited (BHSL), originally founded in 1931 as “The Hindustan Sugar Mills Limited,” is a leading company involved in the production of sugar, alcohol, ethanol, and power generation.
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EID Parry is engaged in Sugar, Nutraceuticals and ethanol production. It also has a significant presence in the Farm Inputs business, including Bio pesticides through its subsidiary, Coromandel International Limited. During Q2FY25, the company sold about 419 lakh litres against the previous year of 304 lakh litres, whereas ENA sold about 159 lakh litres and ethanol around 260 lakh litres.
Key Metrics
Ethanol stocks may appear attractive, but it’s crucial to assess several factors that could impact investment decisions.
Investing in ethanol stocks requires thorough research due to the various risks involved, including commodity price volatility, regulatory changes, and competition from alternative energy sources. While the sector has promising growth prospects, factors such as policy shifts, market conditions, and technological developments can influence stock outcomes.
Ethanol, with its versatility as a mega fuel, has significant potential for impact. A broader adoption of ethanol could result in major savings on oil imports while also promoting environmental protection. India’s ethanol industry presents attractive investment opportunities, especially in light of the country’s growing focus on renewable energy and reducing fossil fuel dependence.
Before investing in leading ethanol stocks in India, it is essential to consider the various factors that impact the market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 24, 2024, 2:52 PM IST
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