Chashma Sugar Mills Limited (CHAS), one of the leading sugar mills in the country, has announced plans to establish an ethanol manufacturing facility.
In a notice to the Pakistan Stock Exchange (PSX) on Tuesday, the subsidiary of Premier Group disclosed this development.
“The Board of Directors of Chashma Sugar Mills Limited, in the meeting held on March 15, 2024, approved the incorporation of a new subsidiary company named ‘Premier Grain Ethanol Limited.’ The new company will focus on the manufacturing, production, formulation, extraction, treatment, blending, refining, purification, distillation, fermentation, reduction, dehydration, rectification, preparation, processing, and sale of various types and grades of ethanol, along with related products and by-products derived from grains as raw materials,” stated the notice.
The total paid-up capital of the new entity will amount to Rs650.02 million, divided into 65.002 million ordinary shares of Rs10 each. “Chashma Sugar Mills Limited will contribute 77% of the shareholding, equivalent to Rs. 500 million, with the remaining amount being contributed by the company’s directors and others,” it further elaborated.
Ethanol, derived from biomass sources like corn, sugarcane, and cellulose, is a renewable fuel and a crucial industrial chemical utilized as a solvent and in the synthesis of various organic chemicals.
Widely recognized as a fuel additive and engine fuel, ethanol is frequently blended with gasoline to mitigate emissions and reduce reliance on fossil fuels.
Established in Pakistan on May 5, 1988, as a public limited company under the Companies Ordinance, 1984, Chashma Sugar Mills Limited commenced operations in the marketing year 1992-93.
Primarily focused on the manufacturing, production, processing, compounding, preparation, and sale of sugar, along with other allied compounds, intermediates, and related products, the company plays a significant role in the industry.
