Triveni Engg was bullish on the sugar sector but cautious on ethanol.

Uttar Pradesh-based sugar major Triveni Engineering and Industries Ltd on Wednesday said it would commission a new dual-feed distillery at Rani Nangal in the state by March 31, but refrained from plans to increase its 250 kiloliters per day (KLPD). initially Sabitgarh Distillery. also announced the launch of India Made Foreign Liquor (IMFL), which is likely to start in April-June of the next fiscal year. “The commissioning will increase the total distillation capacity to 860 KLPD,” said Tarun Sawhney, Vice President and Managing Director, Triveni Engineering and Industries.

The company also disclosed its financial results for October-December 2023, which saw its net profit fall 6.7 percent to ₹ 137.4 million from ₹ 147.3 billion last year. However, in the nine months to December 31, the company’s net profit fell 85 percent to ₹ 234.1 billion, even as gross revenue rose 2.5 percent to ₹ 4,603.3 billion in the period. The company attributed this to the proceeds from the sale of the investment in Triveni Turbine during the April 23-December reporting period, which was reflected in extraordinary entries. It said that there has been no such product for 9 months out of 24 years.

“The result of the third quarter is very satisfactory in the current market situation. Sugar (business) is doing quite well and taking over is just as good. But the water (business) has changed. Distilleries (which produce ethanol and alcohol) have had a lot of activity, political changes that have affected performance,” Sawhney told Business Line. But the long-term fundamentals are still very positive.

Emphasizing the company’s sugar He said that as on 31/12/2023, the stock stood at 29.63 lakh quintals compared to over 23 lakh quintals, he said, and the price is also higher. The domestic sales volume, based on the monthly sugar factory quota of the government., fell seven percent to 6.43 lakh tonnes in April-December (Lt ), while in the third quarter it increased by nine percent to 2.11 cents per litre. The Uttar Pradesh government on January 18 announced an increase in the State Suggested Price (SAP) of sugarcane by ₹ 20 percent for the 2023-24 (October-September) sugar season. Regarding the rejection of Sabitgarh Distillery’s expansion plan, the company said in a statement that it was due to current government policies and challenges related to availability of promised grains at viable procurement costs.

Sawhney also said the company would continue to comply with SEBI regulations and would seek to increase its investment to gain control of Sir Shadi Lal Enterprises, which has a sugar factory in Shamli district, after the company bought a 25.43 percent stake from a company. . from the promoters for approximately ₹ 35 crore. Since all Triveni factories are located in western UP, it is strategically better to take over the Shadi Lal sugar factory, adding that the company is also considering the option (of buying sugar factories) elsewhere in the state. On the alcohol business, he said the company sold 44,313 KL of alcohol in the 3rd quarter, of which 92 percent was ethanol and all alcohol sales were sugarcane raw materials (molasses and juice/syrup). was 73 percent and the share of grain-based raw materials was 27 percent.

“The future will be more grain and less raw sugar cane. It’s hard to say how the relationship might develop, but Rani Nangal’s next unit will use corn in the next budget” The company also announced government approval for a new business venture involving manufacturing, marketing and distribution of its brands. India Made Foreign Liquor (IMFL) in the premium segment by setting up a bottling plant at Muzaffarnagar in Uttar Pradesh at an estimated cost of around Rs 25 crore.

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