In an effort to broaden its product line, Nayara Energy Limited, a private downstream company, intends to invest Rs 600 crore to establish ethanol producing units in the country. The action is consistent with the government's aim of 20% ethanol blending in FY26, the business stated on Tuesday.The company intends to establish two ethanol manufacturing plants in Andhra Pradesh and Madhya Pradesh, each with a production capacity of 200 kiloliters per day (KLPD). Land for the prospective plants has already been found and acquired in both states.
The development of ethanol plants would greatly improve Nayara Energy's ethanol supply reliability, playing an important part in meeting the government's 20% blending objective by the end of fiscal year 2025-26," stated Alessandro des Dorides, Nayara Energy's CEO. The company also intends to expand the number of ethanol plants to have a combined production capacity of roughly 1,000 KLPD, with an emphasis on value enhancement in retail operations and future ethanol blending program reliability.
This strategic step into ethanol production demonstrates our commitment to sustainability, regulatory compliance, and long-term growth in the rapidly evolving energy market. By increasing our footprint in the ethanol segment, we hope to actively contribute to the country's renewable energy goals and build a greener future," stated the CEO.Nayara Energy, which accounts for around 8% of the country's refining production, manages India's second-largest single-site Vadinar refinery, with a capacity of 20 million tonnes per year.
The company operates about 6,300 retail outlets and intends to boost its retail petroleum stations by 50% by 2030. In FY23, Nayara Energy made a net profit of Rs 9,592 crore on operational revenue of Rs 1.37 trillion. It also intends to increase its share in India's downstream petroleum value chain by diversifying its portfolio in the petrochemical industry, chief financial officer Rajani Kesari previously told FE. The company's other FY25 goals include commissioning the first phase of its polypropylene facility project in Vadinar, Gujarat. The project has a total investment of approximately $750 million.
