Atul Chaturvedi, executive chairman, Shree Renuka Sugars Ltd, says the revenue growth has been substantial and the company is on a good track.
Wilmar group company Shree Renuka Sugars Ltd (SRSL) plans to increase ethanol production by 25% next year as part of its drive towards green energy, said Atul Chaturvedi, executive chairman.
“The demand for ethanol in India is skyrocketing,” Mr. Chaturvedi said in an interview. “Ethanol will take India to carbon neutrality. We are currently selling 200 million liters of ethanol per year to the government. It is contributing significantly to our revenue and has also helped in cash flow. We will increase production by 25% in FY24,” he said.
Since 2018, when Singapore’s Wilmar acquired control of debt-ridden Shree Renuka Sugars from its former promoters, the company has expanded ethanol production capacity to 570 kiloliters per day (klpd) with an estimated investment of ₹850 crore. 1,250 KLPD.
Mr. Chaturvedi said the company will continue to evaluate expansion of the ethanol portfolio, including acquisitions.
The company which was going through a financial crisis has turned around with capital inflow from Wilmar which now controls 62.4% of Mr. Renuka’s shares.
“The revenue growth has been substantial and the company is on a good track,” Mr. Chaturvedi said.
The company has also decided to focus on growing its branded sugar business under Madhur Sugars.
Madhur is growing at the rate of more than 20% per annum and we have a production capacity of 170 tons. Post Covid, the consumer profile has changed and loose sugar purchases are coming down. We will continue to grow Madhur as a pan India brand and are looking for 20% year-on-year growth,” he added.
In sugar production, the company is now looking to invest in states other than Karnataka and Maharashtra where it is already present. It is also open for acquisitions as sugar consumption in India is growing at 2% annually, reaching 27.5 million tonnes.
The company, which has two sugar refineries at Kandla and Haldia, is India’s largest exporter of sugar. It exports to the Middle East, Bangladesh and Sri Lanka and exports are increasing Mr. Chaturvedi said..
