Associated Alcohols & Breweries commences ethanol production in MP
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Associated Alcohols & Breweries commences ethanol production in MP

The new ethanol plant capacity is 130 KLPD and has been set up with an approximate investment of Rs. 150 crore

  • By ICN Bureau | January 15, 2024

Associated Alcohols & Breweries Limited (AABL), a leading name in the alcohol beverage industry, announces commercial production of its ethanol plant situated at Barwaha (Near Indore), Madhya Pradesh.

The new ethanol plant capacity is 130 KLPD and has been set up with an approx. investment of Rs. 150 crore It is a grain-based ethanol facility equipped with the capability to process various feedstocks. The plant is equipped with advanced technology and a commitment to eco-friendly practices, representing a major milestone in AABL’s dedication to providing clean energy solutions.

In addition, a boiler has been installed alongside the ethanol plant, capable of utilizing a range of fuels, including coal, husk, and briquettes. This strategic addition will improve operational efficiency and overall performance. The ethanol plant complements the company's current offering as a supplier of high-quality Extra Neutral Alcohol (ENA) for its IMFL products and to the other bottlers.

AABL has reported a revenue of Rs. 326.6 crore for H1 FY24 with an EBITDA of Rs 37.9 crore, up 21.9% YoY. The company boasts a strong balance sheet with a net debt-to-equity ratio of 0.04x as of H1 FY24.

Prasann Kumar Kedia, Managing Director, AABL said, "The commencement of our ethanol plant is a testament to our dedication to sustainable energy. We have already received the orders from the Oil Marketing Companies (OMCs) for the supply till April 2024. The OMCs have recently revised the rate of maize-based ethanol to Rs. 71.86, and since we are currently using maze as feedstock, we are billing the ethanol to OMCs at this revised rate. While the launch is cause for celebration, like any new venture, there may be some teething issues during the initial phases. However, we are confident in our team's ability to overcome them swiftly. We appreciate the support of our stakeholders and the community as we embark on this exciting journey towards a greener and more sustainable future.

Established in 1989, AABL operates a cutting-edge integrated alcoholic beverages manufacturing facility at Barwaha near Indore, Madhya Pradesh. The company is involved in the manufacturing and sales of Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL), Extra Neutral Alcohol (ENA), and Grain-based Ethanol. Additionally, AABL operates as an IMFL franchisee for United Spirit Limited (Diageo) and Inbrew Beverages Private Limited, further diversifying its actively engaged in contract manufacturing for Diageo.

AABL's manufacturing capabilities have a 32-bottling line dedicated to IMFL and IMIL and can produce 12.5 million cases annually. Furthermore, AABL can produce 45 million liters of ENA per annum and has an ethanol capacity of 40 million liters, complemented by a co-generation power plant at its Barwaha plant in Madhya Pradesh.

With operations spanning five states—Madhya Pradesh, Kerala, Delhi, West Bengal, and Chhattisgarh—AABL has established itself as a key player in the alcoholic beverages industry, catering to diverse markets and consumer preferences.


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