In line with the Honourable Prime Minister of India Shri Narendra Modi's vision & roadmap for the Ethanol Blended Petrol (EBP) program with a target of 20% blending by 2025, Modi Naturals Limited has decided to establish an Ethanol Plant in the state of Chhattisgarh. For this project MNL has incorporated a 100 percent subsidiary (wholly owned subsidiary) called 'Modi Biotech Private Limited' (MBPL).
MBPL has received an in-principle approval for a 210 KLD distillery for the manufacture of ethanol from the Central Government, along with signing an MOU with the Chhattisgarh Government for the same. The investment over the next two years is expected to be approx. INR 250 cr, with the first phase of 110 KLD being completed within a year with an investment of INR 160cr. The project will be funded with a combination of internal accruals & debt for which the company has already received the inprinciple approval from its banks. The company has already purchased land for the project and is in the process of ordering plant and machinery, and aims to commission the plant in the 3rd quarter of the next financial year FY 22-23.
Commenting on this announcement, Chairman of the DD Modi Group Shri Anil Modi said, "This project is in line with the company's core values & commitment towards sustainable growth and will also help the company have a diversified portfolio of businesses. We thank the central and state governments for their support to this project. Immense benefits can accrue to the country by 20% ethanol blending by 2025, such as saving Rs 30,000 crore of foreign exchange per year, energy security, lower carbon emissions, better air quality, self-reliance, use of damaged foodgrains, increasing farmers' incomes, employment generation, and greater investment opportunities."
Bioethanol is the most significant biofuel in today's economy, accounting for 65 percent of worldwide biofuel output, and it has the potential to help with the energy transition. According to the Ethanol Blended Petrol (EBP) programme, the government has allowed 20% ethanol blending with gasoline and has directed public sector oil marketing companies (OMCs) to sell ethanolblended petrol. This program, in which OMCs sell petrol blended with ethanol, has been extended to the entire country. In order to fulfill the PM's vision, 1200 cr litres of alcohol (for all uses) would be required per annum, requiring a distillation capacity of 1400 cr litres PA across the country. Currently India's distillation capacity is only 787 cr Litres PA thereby requiring the doubling of capacity in the next 3-4 years, giving an immense boost to the sector.
MBPL and its Parent company have over four decades of experience and talent in managing a wide range of businesses and projects. For the building and commissioning of the ethanol project, the company has taken on board industry experts in the form of consultants, plant suppliers and inhouse team.
Shares of Modi Naturals Limited was last trading in BSE at Rs. 171.80 as compared to the previous close of Rs. 156.20. The total number of shares traded during the day was 81029 in over 517 trades.
The stock hit an intraday high of Rs. 171.80 and intraday low of 153.00. The net turnover during the day was Rs. 13512263.00.