Dwarikesh Sugar commissions new distillery, stock positive

Amid challenging environment with lower sugarcane output and production cuts, the UP based sugar manufacturer, Dwarikesh Sugar Industries, has commissioned a distillery plant at its Dwarikesh Nagar unit in Bijnor District.

The company informed that the new distillery plant has a capacity of 100 KLPD. The management in its comment added that, using state-of-art technology, this project commenced its working nearly a year ago in 2018. Initiatives undertaken by the Government to strengthen the ethanol blending programme, the distillery capacity expansion will increase ethanol production and strengthen the company's forward integration. Besides, this initiative will enable the company to optimize the use of molasses generated within its cane crushing facilities and help to moderate the impact of sectoral volatility.

The sugar industry work during the marketing year between October to September. Extended monsoon and political uncertainty hit the sugarcane output in Maharashtra and Karnataka. Owning to the decline here, UP based players, such as Dwarikesh Sugar, can benefit significantly. Hence, the capacity addition is certainly a key parameter, looking at the current scenario in the sector.

At 11 am, the stock was up by nearly 1 per cent, trading at Rs. 27.50 on BSE.