Vijay Banka, managing director of Dwarikesh Sugar on Tuesday said the company is on track to sell five crore litres of ethanol in FY22.

He told CNBC-TV18 that the new tender would come in a month or so. In the second quarter the firm sold 1.67 crore litres of ethanol, which is a significant improvement over Q1 when it sold 1.1 crore litres, he said.

Banka’s remarks come against the backdrop of Dwarikesh Sugar reporting a good set of earnings for the quarter ended September 30. The company’s revenues went up 21.12 percent to Rs 506 crore against Rs 417 crore in the corresponding quarter last fiscal. The year-on-year (YoY) EBITDA was up at Rs 75 crore against Rs 46 crore in the same quarter last year whereas margins came in higher at 15 percent versus 11 percent.

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Talking about capacity expansion and capex, he said, “We have one distillery now, which has got a capacity to use about 162.5 kilo litre per day (KLPD) of ethanol. And, we are putting up another plant in our third unit that is in the Bareilly district, the capacity of that distillery is going to be 175 KLPD. Together, we will have a capacity in excess of 330 KLPD.”

He added that a second distillery plant will also be put up and will be operational from June or July 2022. Once both plants are fully operational, Dwarikesh Sugar should be able to achieve a run rate of close to 11 crore litre ethanol every year.

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“In FY21-22, we would achieve about five crore litres. FY22-23 it would be about seven crore litres and FY23-24, we would have a run rate of close to 11 crore litres of ethanol,” Banka claimed.

For the full interview, watch the video