Uttam Sugar Mills' Subsidiary to Quadruple Distillery Capacity with ₹110 Crore Investment
Uttam Sugar Mills Limited's board has approved a plan to expand its subsidiary Uttam Distilleries Limited's (UDL) distillery capacity from 40 KLPD to 160 KLPD. The ₹110 crore project, set to complete by March 2027, will be financed through internal resources, promoter contributions, and external borrowings. The expansion aligns with the government's ethanol blending initiative, aiming for environmental benefits and potential foreign exchange savings.

*this image is generated using AI for illustrative purposes only.
Uttam Sugar Mills Limited has announced a significant expansion plan for its subsidiary, Uttam Distilleries Limited (UDL), aiming to quadruple its distillery capacity. The company's board of directors has approved an increase in UDL's distillery capacity from the current 40 KLPD (Kilo Litres Per Day) to 160 KLPD, representing a four-fold expansion in production capabilities.
Investment and Timeline
The ambitious expansion project comes with an estimated investment of ₹110.00 crore. Uttam Sugar Mills has set a target completion date of March 2027 for this substantial capacity enhancement. The company plans to finance the project through a combination of internal resources, promoter contributions, and external borrowings.
Current Operations and Expansion Details
UDL's existing distillery capacity stands at 40 KLPD, with an impressive capacity utilization of 95.00%. The proposed expansion will add 120 KLPD to the current capacity, bringing the total to 160 KLPD upon completion.
Strategic Rationale
The decision to expand UDL's distillery capacity aligns with the Indian government's push for increased ethanol blending in fuel. Uttam Sugar Mills cited the government's encouragement of ethanol-fuel mixing as a key factor in their expansion strategy. The company highlighted two primary benefits of this initiative:
- Environmental friendliness
- Potential for foreign exchange savings for the country
By increasing its ethanol production capacity, UDL aims to meet the growing national demand for ethanol and contribute to the government's eco-friendly fuel initiatives.
Market Impact and Compliance
This expansion represents a significant move for Uttam Sugar Mills and its subsidiary in the ethanol market. The company has made this announcement in compliance with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, ensuring transparency with its stakeholders and the market at large.
As the project unfolds over the coming years, it will be interesting to observe how this substantial capacity increase impacts Uttam Sugar Mills' market position and financial performance in the evolving ethanol sector.
Historical Stock Returns for Uttam Sugar Mills
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+1.33% | +4.97% | -2.22% | +4.11% | -26.92% | +196.18% |