Uttam Sugar completes expansion of distillery unit

Uttam Sugar Mills has successfully completed the expansion of its distillery (ethanol) capacity to 150 KLPD from 75 KLPD at the Barkatpur unit.

This expansion would help the company to reduce its dependency on the sugar cycle. Further, it will enable the company to utilise the entire molasses produced and in turn will eliminate the impact of volatility of prices of molasses on the company’s profitability.

The company has commissioned its distillery unit in 2012 and supplies ethanol to major players like IOCL and HPCL. Also, the government has recently taken initiatives to encourage the use of biofuels. Uttam Sugar Mills is well-poised to reap the benefits of this initiative.

Uttam Sugar Mills is engaged in the manufacture of sugar, ethanol and co-generated power. In Q2FY19, the company has posted decline in revenue by 26% due to the difficult sugar industry scenario.

In Friday’s trading session, the stock jumped by 1.6% and made an intra-day high of Rs. 92.95 on the BSE. The company had hit its 52-week high of Rs. 163.80 on October 16, 2018 and its 52-week low of Rs. 61.50 on July 20, 2018 on the BSE.