CALCULATE YOUR SIP RETURNS

Gulshan Polyols Secures ₹124 Crore Ethanol Supply Order; Share Price Jumps 8%

Written by: Team Angel OneUpdated on: Feb 20, 2025, 2:41 PM IST
Gulshan Polyols has secured an ethanol supply allocation of 21,220 kilolitres under the Ethanol Blended Petrol Programme (EBPP) for ESY 2024-25.
Gulshan Polyols Secures ₹124 Crore Ethanol Supply Order; Share Price Jumps 8%
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Gulshan Polyols Limited (GPL) has been awarded a significant allocation for ethanol supply under the Ethanol Blended Petrol Programme (EBPP) for the Ethanol Supply Year (ESY) 2024-25. The company participated in a tender process floated by major Oil Marketing Companies (OMCs) and secured an order to supply 21,220 kilolitres of ethanol, valued at ₹1,24,13,70,000.

This development comes as part of the Indian government’s initiative to boost ethanol blending in petrol, reducing reliance on fossil fuels and promoting renewable energy sources. The ethanol allocation was awarded by Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Mangalore Refinery and Petrochemicals Limited (MRPL). The supply execution will take place throughout ESY 2024-25.

Broader Allocation Details

Beyond this specific allocation cycle (C3), Gulshan Polyols has secured ethanol supply orders across multiple cycles for ESY 2024-25, amounting to a total allocation of 1,82,242 kilolitres. This cumulative allocation reinforces the company’s strong presence in the ethanol supply sector.

The broader allocation includes a substantial order in Cycle 1, where the company secured 1,42,222 kilolitres of ethanol with an estimated value of ₹9,93,94,31,620. In Cycle 2, GPL was awarded 18,800 kilolitres, valued at ₹1,35,09,68,000, and in Cycle 3, the company received 21,220 kilolitres worth ₹1,24,13,70,000. In total, the company has secured ethanol supply contracts worth ₹12,53,17,69,620 for ESY 2024-25.

This large-scale allocation underscores GPL’s strong foothold in the ethanol market, aligning with India’s target of achieving 20% ethanol blending in petrol by 2025.

Understanding the Ethanol Blended Petrol Programme (EBPP)

The EBPP is a government initiative aimed at reducing dependency on fossil fuels by blending ethanol with petrol. This transition not only lowers carbon emissions but also enhances energy security and supports the agrarian economy by utilising surplus sugarcane and other bio-based sources. Ethanol blending has gained significant momentum, with the government providing incentives to ethanol producers and oil marketing companies to achieve higher blending targets.

Impact on Gulshan Polyols and Market Reaction

The ethanol supply allocation positions GPL as a key player in the government’s clean energy push. The company’s substantial order book for ESY 2024-25 reflects its ability to capitalise on the rising ethanol demand. Market sentiment around this development has been positive, leading to an 8% surge in the company’s share price following the announcement.

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 the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 20, 2025, 2:41 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers