Largest Indian Integrated Sugar Refinery to Double Ethanol Production

8 October 2005

Sify. Simbhaoli Sugar Mills Limited, the largest integrated sugar refinery in India, is doubling its current ethanol production output from 18 million liters (4.8 million gallons US) per year to 36 million liters (9.5 million gallons US) per year by setting up a new 60,000 liters/day ethanol plant adjacent to its Chilwaria Sugar Unit in Eastern Uttar Pradesh.

Financing for the project is partly through a 126-million Rupee (US$2.8 million) loan from ICICI Bank. Production will begin in June 2006.

The company has identified ethanol production as a key future business driver.

The new state-of-the-art ethanol plant will synergise with the existing sugar unit and help the Company achieve economies of scale. It is a part of the future growth plans of the Simbhaoli Group envisaging setting up integrated sugar, bagasse-based cogeneration and ethanol facilities. This project reaffirms the Company’s commitment to Indian Government’s twin- initiative for cleaner environment through reduction in green house gases (GHGs) and lesser dependence on costly petroleum imports. Also, it should be an eligible venture under Clean Development Mechanism for CO₂ emission reduction.

—Dr G.S.C. Rao, Executive Director, Simbhaoli Sugar Mills Limited

Simbhaoli already has supply contracts in place for the ethanol with oil majors.