Olam Agri to Invest USD 60 Mn in Bio-Ethanol Plant in Maharashtra
Olam Agri announces a USD 60 million investment in a multi-input bio-ethanol plant in Maharashtra, doubling its sugarcane crushing capacity while enhancing collaboration with farmer producer organisations. This marks a significant step towards contributing to India's growing demand for renewable energy and sustainable farming.
September 06, 2024. By EI News Network
This investment is part of Olam Agri's strategic move to expand its operations in India, where it already runs a sugar factory with a crushing capacity of 4,000 tonnes per day. The new bio-ethanol unit will enable the company to diversify its production inputs by utilising either sugarcane or corn, depending on availability, thereby ensuring consistent output.
Muthukumar Neelamani, Group CFO of Olam Agri, said, "Given the recent government policies on mixed fuels and the shift from B10 to B20, we believe that integrating forward into bio-ethanol production is the right move. We are investing close to USD 60 million in a multi-input capability distillery, which means that if the cane production is low, we can substitute that with corn and vice-versa."
The new plant is expected to become operational by March next year and will allow Olam Agri to double its sugarcane crushing capacity to approximately 8,500 tonnes per day. Olam Agri operates in over 30 countries, engaging in various sectors, including rice, cotton, pulses, sugar, and bio-ethanol.
Neelamani emphasised, "India is a significant market for us. Olam Agri is expanding its collaboration with farmer producer organisations (FPOs) in India. Following the success of a pilot project in Madhya Pradesh last year, which involved about 6,000 farmers, the company has increased its engagement to include six FPOs and around 11,000 farmers this year. Olam Agri also plans to replicate this successful model in the sugarcane and corn sectors, reinforcing its commitment to sustainable farming practices."
Since 2011, Olam has worked closely with nearly 25,000 sugarcane farmers in India, partnering with organisations like the International Finance Corporation (IFC) and Solidaridad to promote sustainable agricultural practices and improve yields. This latest investment in bio-ethanol production marks a significant step forward in Olam Agri's efforts to contribute to India's growing demand for renewable energy and sustainable farming.
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