Zuari Industries, Envien sign MoU to build and operate a biofuel distillery; stock soars ~3%

7 Sep 2022 , 10:40 AM

Zuari Industries Limited announced the signing of a Memorandum of Understanding (MoU) with Envien International Limited, Malta (EIL) and Zuari Envien Bioenergy Private Limited (ZEBPL) to construct and operate a biofuel distillery, as well as further explore organic and inorganic business opportunities in the biofuel space in India.

To accomplish this goal, the Company and EIL have agreed to form a 50:50 joint venture to design, build, commission, and manage a 150-kilo litres per day (KLPD) ethanol distillery and sell it to Oil Marketing Companies (OMCs) to satisfy their blending needs.

The distillery will also be able to change the product mix and produce Extra Neutral Alcohol (ENA) or any other acceptable product based on market demand.

The MoU is an extension of an earlier signed agreement between the company and M/s AZV, a.s (an Envien Group company) for the establishment of a 210 KLPD ethanol plant based on sugarcane juice.

The company is also aiming to increase the capacity of its existing 100 KLPD molasses/sugarcane juice-based facility to 125 KLPD, which is slated to begin commercial production during the upcoming sugar season.

At around 10.43 AM, Zuari Industries was trading at Rs183.15 up by 3.1% from its previous closing of Rs177.65 on the BSE. The scrip opened at Rs184.90 and touched intraday high and low of Rs186.50 and Rs180.70 respectively.

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