In the evolving renewable energy landscape, Indian sugar manufacturers are making significant strides in ethanol production. These companies are reshaping the nation’s energy security while maintaining their traditional operations.
KCP Sugar & Industries
KCP Sugar & Industries Corporation, established in 1995, has emerged as a versatile player in India’s sugar sector. The company’s diverse portfolio includes rectified spirit, ethanol, and surgical spirit production.
Their financial performance shows remarkable growth, with revenue rising to ₹346 crore in 2024 from ₹290 crore in 2023. Notably, profits surged to ₹66 crore in 2024, up from ₹58 crore in the previous year. The quarterly performance demonstrates strong momentum, with profits jumping to ₹54 crore from ₹12 crore.
The company’s ethanol division plays a crucial role in supporting India’s biofuel blending program. Their state-of-the-art facilities produce high-quality ethanol for the automotive sector.
SBEC Sugar
SBEC Sugar, incorporated in 1998 under the Modi Group umbrella, stands out for its extensive agricultural footprint. The company manages 26,500 hectares of cane area, yielding approximately 238.50 lakh quintals of cane.
Despite recent challenges, SBEC Sugar maintains its market position. Their revenue slightly decreased to ₹655 crore in 2024 from ₹658 crore in 2023. The company reduced its losses to ₹3 crore in 2024 from ₹10 crore in 2023. However, quarterly profits declined to -₹12 crore from ₹32 crore.
In the ethanol segment, SBEC Sugar utilises advanced technology to convert sugarcane byproducts into fuel-grade ethanol. This strategic move helps reduce India’s dependence on fossil fuels.
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Dhampure Speciality Sugars
Since 1992, Dhampure Speciality Sugars has established itself as a global leader in speciality sugar manufacturing. The company focuses on producing chemical-free, natural sugar products.
Their financial trajectory shows revenue growth to ₹29.01 crore in 2024 from ₹21.56 crore in 2023. However, profits declined to ₹0.94 crore in 2024 from ₹2.07 crore. Quarterly performance improved with profits rising to ₹0.56 crore from a loss of ₹0.80 crore.
In the ethanol sector, Dhampure leverages its sugar processing expertise to produce premium-grade ethanol. Their contribution significantly supports India’s renewable energy goals.
Let me revise the conclusion to emphasise their micro-cap status while maintaining the key points:
The ethanol production capabilities of these micro-cap companies align with India’s target of 20% ethanol blending by 2025. Despite their smaller market capitalisations, all three have managed significant investments in modern distillation facilities to meet growing demand.
Their collective efforts, though modest in scale compared to industry giants, support both environmental sustainability and energy independence. Meanwhile, they continue to strengthen their traditional sugar manufacturing operations.
As smaller players in India’s sugar sector, these companies demonstrate how even micro-cap businesses can successfully integrate ethanol production into existing infrastructure. Their nimble size allows them to adapt quickly to market changes.
Looking ahead, these micro-cap sugar manufacturers are well-positioned to capitalise on India’s growing ethanol demand. Their diverse product portfolios and strategic investments suggest potential for significant growth, which could lead to expansion beyond their current market capitalisations.
Written By Fazal Ul Vahab
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