Shree Renuka Sugars stock locks at new 52-week high after board nods capacity expansion of ethanol production

The mode of financing the expansion would be borrowing. The proposed capacity is expected to be added by October 2022.

Jun 28, 2021 04:06 IST India Infoline News Service

Shree Renuka Sugars has received board of directors approval to further expand capacity for ethanol production from 970 KLPD to 1400 KLPD. The investment required for expansion would be Rs450cr.

Shree Renuka Sugars said in its regulatory filing that the Government of India has mandated 20% ethanol blending in fuel by 2025 against a current blending of 7.79%. Considering this, the Company sees a huge untapped demand for ethanol for the ethanol blending program of the Government of India which can be of benefit to the Company in the future. 

The mode of financing the expansion would be borrowing. The proposed capacity is expected to be added by October 2022.

Earlier in February this year, the company's board approved the capacity expansion of ethanol production from 720 Kilo Litre Per Day (KLPD) to 970 KLPD.

On Sensex, Shree Renuka Sugars finished at the new 52-week high of Rs35.75 per piece up by 5%.

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