Sugar stocks jumped on Monday’s trade after Prime Minister Narendra Modi launched the Global Biofuel Alliance (GBA) on Saturday on the sidelines of the G20 Summit.
The Indian government announced the Global Biofuel Alliance at the G20 Summit and urged nations to join the initiative with a plea to increase ethanol blending with petrol globally to 20 percent by reducing reliance on fossil fuels, which resulted in a tremendous rise in sugar stocks on Monday, with ethanol-producing companies gaining up to 7 percent.
The Global Biofuel Alliance aims to increase the use of sustainable biofuels and encourage technology advancements to accelerate global biofuel use.
Biofuel is a renewable energy source obtained from biomass. India, which imports more than 85 percent of its crude oil, So India is progressively increasing its capacity to create fuel from crop stubble, plant waste, and municipal solid waste.
According to a recent statement from the Indian Biogas Association (IBA), the biofuel alliance has the potential to produce $500 billion in prospects for G20 countries over the next three years.
EID Parry (India) Ltd
EID Parry (India) Ltd shares rose 3.3 percent to Rs 537.50 on Monday, up from the previous close price of Rs 9,478 crores.
The business plans to invest Rs 286 crore to raise its ethanol production capacity to roughly 582 KLPD, while the Haliyal distillery facility would be extended to 120 KLPD capacity from 50 KLPD.
Dalmia Bharat Sugar and Industries Ltd
Dalmia Bharat Sugar and Industries shares rose 6 percent to Rs 444 apiece from the previous close price, The company has a market capitalization of Rs 3,552 crores.
Dalmia Bharat and Sugar Industries’ boards of directors recently approved the establishment of a grain-based distillery at Nigohi Unit with a capacity of 250 KLPD and a capital cost of Rs 4 billion. The distillery is scheduled to open in September 2024.
Shree Renuka Sugars Ltd
Shree Renuka Sugars shares rose 7 percent to Rs 55.80 on Monday from the previous close price, with a market value of Rs 11,696 crores.
The company recently expanded its ethanol production capacity from 720 kilolitres to 1,250 kilolitres. The company expects ethanol to contribute about 40 percent of its revenue, excluding the refinery business.
Triveni Engineering and Industries Ltd
Triveni Engineering and Industries’ shares rose 4 percent to Rs 360 from the previous close price, the firm has a market valuation of Rs 7,826 crores.
The company intends to convert over 12 percent of its sugar production to ethanol production. In addition, they intend to raise its ethanol capacity from 660 KLPD to 1,100 KLPD. The expansion will enable the corporation to raise ethanol output from 180 million litres to 31 million litres by the fiscal year 2024-25.
Balrampur Chini Mills Ltd
Balrampur Chini Mills shares gained 4.5 percent to Rs 425 on Monday from the previous close price, the company has a market valuation of Rs 8,560 crores.
Balrampur Chini, which has a distillery capacity of close to 1,050 kilolitres per day, accounts for about five percent of the country’s total ethanol production and more than 30 percent of Uttar Pradesh’s production. It supplied 17.09 crores litres of ethanol in FY23.
Dwarikesh Sugar Industries Ltd
Dwarikesh Sugar Industries shares gained 5.4 percent to Rs 100.70 apiece from the previous close price, The company has a market valuation of Rs 1,849 crores.
The company has a distillery capacity of 337.5 KL of ethanol production per day across two sugar units.
Written by Omkar Chitnis
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