The Board of Directors of DCM Shriram Limited has approved a Capital expenditure of Rs. 145 crore for Ethanol expansion at DCM Shriram Ltd., Sugar Unit, Ajbapur.

The distillation capacity of Ajbapur Plant is increased from 200 KLPD (Kilo Litre Per Day) to additional 120 KLPD taking the total to 320 KLPD. The distillery will use grain based i.e. multi-feedstock including grain for Ethanol production and the likely date of commissioning is Q2 FY23 i.e. August 2022.

The total distillation capacity across all units post expansion will be 470 KLD. The above project is to be financed through internal accruals and debt. The rationale for setting up the above distillery is to meet the growing demand of Ethanol in the country.

For Q1 FY22, Ethanol volumes for the company stood at 311 lakh litres versus 286 lakh litres in Q1 FY21.

Commenting on the expansion, Ajay Shriram, Chairman & Senior Managing Director and Vikram Shriram, Vice Chairman & Managing Director said, "In line with our strategy to grow the scale, integration and cost efficiencies of our businesses, we have taken further steps in the direction. We are expanding our Ethanol capacity with a new 120 KLD Grain based Distillery at our Ajbapur Sugar unit."

With the continued support of government policies, the company will focus on Ethanol and higher exports as well as optimize use of B Heavy molasses in distillery.