Zuari Industries gains on inking MoU with Envien International and ZEBPL to build biofuel distillery

Zuari Industries advanced 3.43% to Rs 183.75 after the company announced that it has executed a memorandum of understanding (MoU) with Envien International, Malta (EIL), and Zuari Envien Bioenergy (ZEBPL) to build and operate a biofuel distillery.

The company said that it will explore the organic and inorganic business opportunities in the biofuel space in India.

In order to achieve the said objective, the company and EIL have consented to establish a 50:50 joint venture which shall inter alia design, construct, commission and operate a 150 kilo litres per day (KLPD) Ethanol distillery and sell the same to Oil Marketing Companies (OMCs) to meet their blending requirements. The distillery will also have the flexibility to vary the product mix and manufacture Extra Neutral Alcohol (ENA) or any other suitable product based on the market need and requirement, the sugar company stated in the press release.

The MOU is an extension of an earlier signed MOU between the company and AZV, a.s (an Envien Group company) for setting up a sugarcane juice based 210 KLPD ethanol plant, the firm stated.

Zuari Industries said that it is also working on increasing the capacity of its existing 100 KLPD molasses/sugarcane juice based plant to 125 KLPD, which is expected to start commercial production in the upcoming sugar season.

Zuari Industries is engaged in the manufacture sale and trading of fertilizers seeds and pesticides. The company reported a consolidated net profit of Rs 253.04 crore in Q1 FY23 as against Rs 26.18 crore reported in Q1 FY22. Net sales surged 35.2% year on year to Rs 234.04 crore in Q1 FY23.

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