Incorporated in 1995, Vishwaraj Sugar Industries Limited has an integrated sugar and ethanol manufacturing plant in Bellad-Bagewadi (Karnataka).
The company operates in the largest sugar cane growing belt of Karnataka in Belagavi district. This district alone contributes over 50% of the state’s annual production of cane, sugar and ethanol. On average, 2 lakh MT of sugar cane are crushed per day in Belagavi district in 24 factories. During the season, factories in the region crush an average of 8,000 tons of sugar cane per day.
The company is looking to capitalize on the opportunity of India’s target to reach 20% ethanol blending by 2025. The government is encouraging ethanol production from sugar producers, making production more viable and commercially attractive ethanol. To seize this opportunity, the company plans to increase the capacity of the distillery from 100 KLPD to 250 KLPD and steps have already been taken to obtain environmental clearance, which is expected by March 2022.
As part of the expansion of greenfield, the company applied to the competent authority for the granting of a remote certificate for the establishment of a sugar manufacturing unit in the village Navage taluka in the Belagavi district. All of the crushed cane will be used solely for the production of ethanol, initially with a capacity expansion from 100 KLPD to 300 KLPD. This would allow the company to take advantage of the government policy of blending 20% ethanol. In addition, the company has innovated in processes to manufacture pharmaceutical grade sugar.
Interestingly, the company filed an application with the competent authority to patent the process of manufacturing pharmaceutical grade sugar by registering the process. The company mentioned that the patented process will be used in the next sugar season to manufacture pharmaceutical grade sugar, which will be a product and not a commodity.
The stock has risen 44.53% over the past year, while over the past month it has generated negative returns as it has fallen 7.37%.