Last month, Amul, India’s leading dairy brand renowned for its milk products, achieved a major milestone by conducting its first large-scale trial to produce bioethanol from whey, a byproduct of cheese and paneer production. Building on the success of this groundbreaking trial in the Indian dairy sector, Amul plans to invest Rs 70 crore in establishing a bioethanol plant with a daily production capacity of 50,000 litres. This venture is projected to generate an additional Rs 700 crore in income for dairy farmers through the sale of bioethanol, reported The Times of India.
However, Amul is not the only company tapping into the growing biofuel market. The Indian government’s mandate to blend up to 20% bioethanol in petrol as part of the Ethanol Blended Petrol (EBP) programme is sparking the launch of multiple ethanol production projects across the country. In Ahmedabad, several companies are preparing to enter the ethanol manufacturing sector, anticipating strong growth in demand.
One such company, Ahmedabad-based Grainspan Nutrients Pvt Ltd, which has been involved in grain milling and exporting grain derivatives since 2012, has already set up an ethanol plant as part of its forward integration strategy. Sampatraj Chaudhary, the company’s chairman, explained, “We’ve been involved in maize and rice production for years. When the government announced the ethanol blending initiative, we saw it as a great opportunity and decided to invest in an ethanol plant.”
Chaudhary further stated, “We invested around Rs 500 crore and have a current production capacity of 340 kilolitres per day (KLPD). We started with a 100 KLPD capacity in 2023 and later expanded. Now, we supply ethanol to two major Oil Marketing Companies (OMCs).” He emphasized that India has vast untapped potential in agriculture-linked industries, with ethanol being a key opportunity, especially with the government’s 20% blending policy in place. “As petrol consumption rises, so will the demand for ethanol,” he added.
The Chiripal Group, based in Ahmedabad, has also entered the sector with its new company, True Green Bio Energy Limited. Deepak Chiripal, the group’s promoter, stated, “The Government of India’s goal to achieve 20% ethanol blending by 2025 aims to reduce crude oil imports, conserve foreign exchange, and reduce carbon emissions.” Chiripal explained that renewable energy is a vital component of their long-term sustainability strategy. “This ethanol plant is part of our green energy division, with an installed capacity of 300 KLPD, and will start operations soon. We have invested about Rs 350 crore in this greenfield project near Ahmedabad.”
He also mentioned that the primary raw material for ethanol production is sourced from the Food Corporation of India (FCI), with additional needs met through the open market to ensure an efficient and stable supply chain.
In addition, Ahmedabad-based Kineeva Industries LLP is setting up its own ethanol plant. Pranay Kabra, one of the directors, shared, “The demand for green fuels is set to surge, and this is an emerging sector. We’re in the process of obtaining necessary approvals for our planned plant, which will have a capacity of 100 KLPD and an investment of around Rs 120 crore.”
Industry insiders report that about 14 companies in Gujarat have received approval from OMCs to establish ethanol units. Collectively, these companies are expected to invest around Rs 3,300 crore to set up plants with a total production capacity of 2,800 KLPD.
