Incorporated in 1995, Vishwaraj Sugar Industries Limited has an integrated sugar and ethanol manufacturing plant in Bellad-Bagewadi (Karnataka).
The company is present in the largest sugarcane cultivation belt of Karnataka in the Belagavi district. This district alone contributes more than 50% of the state’s annual sugarcane, sugar and ethanol production. On average, 2 lakh MT of sugarcane are crushed per day in Belagavi district in 24 factories. During the season, factories in the region grind an average of 8,000 MT of sugar cane per day.
The company seeks to capitalize on the desirability of India’s target of reaching 20 percent of the ethanol blend by 2025. The government encourages the production of ethanol by sugar producers, making the production of ethanol more commercially viable and attractive. To seize this opportunity, the company plans to expand 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.
On the expansion of greenfield, the company has applied to the competent authority for the granting of a remote certificate for the establishment of a sugar manufacturing unit in Navage village taluka in Belagavi district. All of the crushed cane will be used solely for the production of ethanol, with a first capacity expansion from 100 KLPD to 300 KLPD. This would allow the company to take advantage of the government policy of blending 20 percent ethanol. In addition, the company has innovated in its pharmaceutical grade sugar manufacturing processes.
Interestingly, the company filed an application with the competent authority to patent the manufacturing process of pharmaceutical grade sugar by registering the process. The company mentioned that the patented process will be used in the coming sugar season to make pharmaceutical grade sugar, which will be a product, not a commodity.
The stock has risen 44.53 percent in the past year while in the past month it has generated negative returns as it has fallen 7.37 percent.