Que: Can you provide insights into Triveni Engineering and Industries Ltd.'s journey from a single sugar plant to its current status as a dynamic and diversified conglomerate?

Ans: Throughout our dynamic 90-year journey, we have transformed into a leading industrial conglomerate since our establishment in 1932. Today, we stand as one of India's major integrated sugar and ethanol manufacturers, with notable contributions in power transmission and water & wastewater treatment solutions. Our success is rooted in strong organizational foundations, actively leveraging the expanding opportunity landscape through unwavering commitments to quality and innovation.

Our sugar business has played a pivotal role in our growth strategy, making us one of India's largest sugar manufacturers with 7 state-of-the-art FSSC 22000 certified sugar units strategically located in the sugarcane-rich areas of Uttar Pradesh. These units facilitate the production of high-quality sugar, with captive feedstock supporting the production of potable alcohol, fuel-ethanol, and power.

The quantum of sugarcane crushed has been improving continuously for the Company over the years, growing at an impressive CAGR of 7.8 percent p.a. during 2014-15 to 2022-23. The Company recorded its highest-ever crush of 9.33 million tonnes in the sugar season 2022-23. We are among the leading companies in the state of Uttar Pradesh in terms of recoveries, powered by our focus on high-sugar-yielding sugarcane varieties, planting methodologies, crop management, shorter cut-to-crush time, etc.

In our alcohol business, our strategy aligns with India’s E20 program and self-reliance goals, focusing on manufacturing high-quality ethanol and expanding distillation capacities with multi-feed options. FY 23 witnessed record production and sales.

In line with India's self-reliance journey, our Power Transmission Business (PTB) encompasses gears, built-to-print, and defence segments. As a leading gear manufacturing Company, PTB is recognized for cutting-edge technology, knowledge, and expertise, with installations in 80 countries across various applications, boasting a significant domestic market share and global OEM recognition. Our contribution extends to providing critical technology and engineered solutions to the Indian Navy and Defence industry, with ongoing capacity expansion, including the dedicated multi-modal facility in Mysuru. Simultaneously, as a leading provider of water & wastewater solutions, we are expanding our global presence, delivering impactful solutions and offering turnkey execution and operation of plants for municipal and industrial sectors.

Throughout our journey, Triveni has adopted a prudent approach to business, focusing on high-quality capital expenditures such as modernization, setting up additional distillation capacity, and investments in new facilities for power transmission & defence. These initiatives are aimed at long-term value creation for our shareholders.

Que: How has the Company actively supported the Government's vision of E20 petrol?

Ans: Triveni Engineering is working in line with the Government’s agenda of achieving a 20 percent ethanol blending target by 2025. We have been actively focusing on expanding its ethanol production capacity bolstering our capabilities quite substantially from 320 KLPD to 660 KLPD in FY 23. The strategic expansions led us to achieve the highest-ever alcohol production of 18.12 crore liters, while by the end of Q3 FY 24, we had already produced 13.5 crore liters of ethanol for the fiscal year, with anticipation to surpass last year's production figures.

Supporting this growth, we are strategically expanding our distillation capacity from the existing 660 KLPD to 860 KLPD. We expect the new upcoming Rani Nangal distillery to be commissioned before March 31, 2024.

Que: Triveni Engineering has been involved in establishing a large-scale multi-feed distillery. Could you shed light on the technological advancements or innovations that have been implemented in this process?

Ans: We have state-of-the-art distilleries spread across Muzaffarnagar (MZN) – 2 facilities, Sabitgarh (SBT) and Milak Narayanpur (MNP) in Uttar Pradesh aggregating to 660 KLPD. These facilities have the capability to produce Ethanol, Extra Neutral Alcohol (ENA), Rectified Spirit (RS) and Denatured Spirit (SDS). The Company utilises a mix of sugarcane-based feedstocks as well as grains. Distillers Dried Grain Soluble (DDGS), a co-product produced on grain operations is also sold to premium Institutions and has been well accepted in the market. The Company also manufactures Indian Made Indian Liquor (IMIL).

At Triveni, we're advancing with multi-feed distilleries at Milak Narayanpur and Rani Nangal. These state-of-the-art facilities can utilize molasses, juice/syrup, or grains to produce top-notch ethanol at the highest efficiency. They're among India's largest new multi-feed distilleries which was built with the latest technology in grain milling section and DDGS production. We have the best-integrated water management system with ZLD while utilizing all the feedstocks.

Que: How do you see the future of the ethanol industry?

Ans: India is poised for an ethanol revolution, focusing on second-generation ethanol (2G), Sustainable Aviation Fuel (SAF), and Compressed Biogas (CBG). The shift towards biofuels, driven by the EBP20 target, signals a transformative journey aligning with energy sustainability and environmental goals.

Crucial investments in technology, capacity improvement, and modern biomass and biofuel strategies are pivotal. To drive this transformation, sustainable financial support for bioenergy projects, increased minimum biofuel prices, tax reductions, and integration of the sugar industry into the Perform, Achieve, and Trade (PAT) scheme are imperative policy components. A similar level of Government support as provided to the EV industry should be extended to the bioenergy sector, ensuring affordability and reliability alongside environmental sustainability.

The sugar industry has actively supported the Ethanol Blending Program in collaboration with the Government. As of November 2023, the ethanol production capacity stands at approximately 1380 crore litres, comprising molasses-based (875 crore liters) and grain-based (505 crore liters) ethanol. To achieve the 20 percent blending target by 2025, an estimated 1700 crore liters of ethanol-producing capacity is necessary, considering the plant operates at 80 percent efficiency. The concerted Government push towards the production and blending of fuel ethanol with petrol presents new opportunities for the Indian sugar industry, promoting diversification and reducing reliance on imported crude oil.

Triveni, with its forward-thinking approach, commitment to innovation, and strategic positioning, stands as a key influencer in shaping the trajectory of the biofuels landscape. We remain steadfast in our dedication to leading the charge towards sustainable fuel solutions, aligning with global environmental goals, and significantly contributing to India's journey towards energy independence.

Que: How does the company stay abreast of the latest developments and trends in the biofuels industry, and how does it adapt its strategies accordingly?

Ans: Triveni Engineering and Industries Ltd. employs a multifaceted approach to remain at the forefront of the dynamic biofuels industry. We proactively monitor and interpret changes in Government policies, actively contributing expertise to industry discussions and providing insights into the practical implications of regulatory shifts. Actively participating in policy dialogues ensures that our strategies align with evolving standards, allowing us to anticipate potential shifts in the regulatory landscape. This proactive stance not only helps navigate regulatory complexities but also positions Triveni to capitalize on emerging opportunities resulting from supportive Government policies.

Complementing our policy engagement, Triveni places a strong emphasis on embracing cutting-edge technologies and fostering collaboration in our ethanol production processes. For instance, we have implemented a robust sugarcane development program with the farmer community, helping them combat red rot, other diseases, and pests, and providing yield enhancements. Our digital interventions, reaching our entire base of ~ 3.35 lakh farmers, further strengthen this programme's impact. Additionally, we continue to invest in debottlenecking and enhancing our crush rate, resulting in higher production of refined sugar across our various units.

Significant investments in research and development enable the exploration and implementation of advancements that enhance efficiency, improve crush capacity, and ensure the production of high-quality ethanol. From incorporating state-of-the-art distillation methods to leveraging digital technologies for precision agriculture, Triveni's commitment to staying abreast of technological trends positions the company as a technological leader in the biofuels sector.

Looking ahead, Triveni remains focused on continuous improvement, leveraging stakeholder engagement, and navigating global trends in the biofuels industry. By embracing innovation, fostering collaboration, and staying attuned to market dynamics, Triveni Engineering and Industries Ltd. is poised to drive sustainable growth and make a positive impact in the biofuels industry.

Que: Are there any upcoming projects or initiatives that Triveni Engineering is planning to undertake in the biofuels or related sectors?

Ans: In our ongoing efforts within the biofuel sector, our primary focus remains on augmenting our distillation capacity to 860 KLPD through the implementation of cutting-edge multi-feed, multi-product distilleries. Further enhancement of distillation capacities and focussing on other biofuels are under discussion.

The Company is also entering into a new venture in the business of manufacturing and marketing Indian Made Foreign Liquor (IMFL) as part of the forward integration of our distillery operations.

The Company will set up a bottling plant in Muzaffarnagar, Uttar Pradesh, at an estimated cost of INR 25 crore, subject to necessary statutory clearances. The facility is expected to commence production by the end of Q1 FY 25.

This venture is directly a move towards premiumisation and forward integration of our existing products. We are already a large manufacturer of ENA in our existing facilities. So, this is a forward integration of that business.

This strategic expansion helps us capitalize on emerging market opportunities and leverage Triveni's established expertise in distillery operations to deliver premium-quality IMFL products to consumers.