Pasupati Acrylon Limited , a key player in the petrochemical industry, has announced a significant business development in its ethanol supply operations. The company has secured an allocation for 9,798 kilolitres (KL) of ethanol for the third quarter of the Ethanol Supply Year (ESY) 2024-25, spanning from May to July 2025.

Allocation Details

The ethanol allocation, awarded by major Oil Marketing Companies (OMCs) including Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), and Hindustan Petroleum Corporation Limited (HPCL), carries an estimated contract value of ₹63.00 crore. This allocation is part of the government's Ethanol Blended Petrol Programme (EBPP), aimed at reducing the country's dependence on imported fossil fuels and promoting cleaner energy alternatives.

Production Sources

According to the company's disclosure, the allocated ethanol will be produced from various sources, including:

• Damaged food grains
• Surplus FCI (Food Corporation of India) rice
• Maize

This diversification in feedstock demonstrates Pasupati Acrylon's commitment to utilizing multiple resources for ethanol production, aligning with the national objective of sustainable fuel production.

Strategic Importance

The ethanol supply contract represents a significant business opportunity for Pasupati Acrylon, potentially boosting its revenue stream for the quarter. It also underscores the company's growing role in India's biofuel sector and its contribution to the nation's energy security goals.

Execution Timeline

As per the LODR (Listing Obligations and Disclosure Requirements) filing, Pasupati Acrylon is expected to execute this ethanol supply contract during the third quarter of the Ethanol Supply Year 2024-25, specifically from May to July 2025.

Market Implications

This development is likely to be viewed positively by investors and market analysts, as it provides clear revenue visibility for a specific quarter and demonstrates the company's ability to secure substantial contracts in the competitive ethanol market.

Pasupati Acrylon's involvement in the Ethanol Blended Petrol Programme not only diversifies its business operations but also aligns the company with India's broader objectives of promoting renewable energy and reducing carbon emissions in the transportation sector.

As the ethanol blending targets in India continue to rise, companies like Pasupati Acrylon that have established themselves in this sector may be well-positioned to capitalize on the growing demand for biofuels in the coming years.

Pasupati Acrylons , a leading manufacturer of acrylic fiber and yarn, has announced a significant development in its ethanol business. The company has been allocated a substantial ethanol supply contract for the third quarter of the Ethanol Supply Year (ESY) 2024-25, marking a notable expansion in its involvement with the Ethanol Blended Petrol Programme (EBPP).

Contract Details

Pasupati Acrylon has been awarded a contract to supply 9,798 kilolitres of ethanol to major oil marketing companies (OMCs) in India. The beneficiaries of this supply include:

• Bharat Petroleum Corporation Limited (BPCL)
• Indian Oil Corporation Limited (IOCL)
• Hindustan Petroleum Corporation Limited (HPCL)

The allocation covers the period from May 2025 to July 2025, which constitutes the third quarter of the Ethanol Supply Year 2024-25. The estimated value of this contract stands at Rs. 63.00 crore, representing a significant revenue opportunity for the company.

Production Source and Programme

The ethanol to be supplied under this contract will be produced from various sources, including:

• Damaged food grains
• Surplus FCI (Food Corporation of India) rice
• Maize

This production aligns with the objectives of the Ethanol Blended Petrol Programme, a government initiative aimed at reducing oil imports and promoting the use of renewable fuels.

Corporate Governance and Transparency

In its disclosure to the stock exchanges, Pasupati Acrylon has confirmed that the promoters of the company have no interest in the entities awarding the contract. Furthermore, the company has clarified that this contract does not fall within the purview of related party transactions, ensuring transparency and adherence to corporate governance norms.

Market Impact

This contract represents a strategic move for Pasupati Acrylon, potentially diversifying its revenue streams beyond its core business of acrylic fiber and yarn production. The company's involvement in the ethanol supply chain aligns with the government's push for increased ethanol blending in petrol, which could provide steady demand for its ethanol production in the coming years.

Conclusion

The securing of this Rs. 63.00 crore ethanol supply contract by Pasupati Acrylon for Q3 2024-25 marks a significant milestone for the company. It not only contributes to the national objective of increasing ethanol blending in petrol but also potentially opens up new avenues for growth and diversification for the company. As the ethanol blending programme continues to gain momentum in India, companies like Pasupati Acrylon are well-positioned to play a crucial role in this eco-friendly initiative.