Triveni Engineering looks to invest Rs. 210 crore in sugar, transmission businesses.

Having more than doubled its ethanol manufacturing capacity over the past 18 months, 

Triveni Engineering & Industries is now looking to invest Rs. 210 crore this fiscal to enhance its sugar crushing capacity and expand its transmission business, the company's managing director said.

A sum of Rs. 130 crore will be invested in the modernisation of three sugar units of the company at Khatauli, Deoband and Sabitgarh in Uttar Pradesh, according to Tarun Sawhney, managing director at Triveni Engineering. It will help the company double its capacity for pharma sugar which fetches a significant premium over refined sugar. The investment will also help the company increase the share of refined sugar from 40% to 60% of its total production.

Typically refined sugar carries a premium of around 75 paise per kilogram with marginal incremental cost, leading to higher margins over sulphitation sugar, the company said.

It will also invest Rs. 80 crore in its power transmission business towards modernisation, expansion, and for the purchase of machinery. The company said that in FY22, the power transmission business registered its highest-ever annual revenues and profitability increased by 57% and the new investment will help continue this momentum. This business has an outstanding order book of Rs. 221 crore as of 31 March.

Triveni increased its ethanol making capacity from 320 kilo litres per day (KLPD) to 520 KLPD at the beginning of this month at an investment of around Rs. 350 crore. With the completion of two ongoing expansion projects, the company plans to take this up to 660 KLPD by next month. This makes it one of the leading ethanol makers in the country.

Ethanol manufacturers have invested heavily in increasing their manufacturing capacities encouraged by the government's push to increase ethanol blending with petrol. The Centre recently announced plans to advance its target of 20% ethanol blending with petrol to 2023 from 2025.

ET