Dalmia Bharat Sugar and Industries on Saturday said it will set up two grain-based distilleries to produce ethanol with an investment of Rs 263 crore.
In a regulatory filing, the company said its board has given in-principle approval to set up two grain-based distilleries with a capacity of 100 KL (kilo litre) each to produce around 6 crore litre of ethanol.
The distilleries are expected to be commissioned in next 15-18 months.
The company said its existing installed capacity is around 10 crore litre, which is expected to be increased to 15 crore litre post implementation of distillery expansion plan already approved in the earlier board meetings.
After the board's decision on Friday, expanded capacity will be around 21 crore litre of ethanol.
The capital expenditure for the expansion is estimated to be Rs 263 crore which will be financed partly by way of internal accruals and partly through debt, the filing said.
On Friday, Dalmia Bharat Sugar and Industries reported a marginal decline in consolidated net profit at Rs 124.34 crore for the quarter ended June 30, 2021.
Its net profit stood at Rs 125.86 crore in the year-ago period.
Total income fell to Rs 823.45 crore in the quarter from Rs 897.99 crore in the year-ago period.
