Associated Alcohols & Breweries Ltd (BO: ASAL ) (AABL), a prominent player in the alcohol beverage industry, proudly announces the initiation of commercial production at its Ethanol plant located in Barwaha, Madhya Pradesh. This state-of-the-art plant, with a capacity of 130 KLPD and an investment of approximately INR 150 crore, signifies a significant stride in AABL’s commitment to clean energy solutions. Equipped to process diverse feedstocks, the grain-based ethanol facility integrates advanced technology and eco-friendly practices.

In a strategic move, a versatile boiler has been installed alongside the ethanol plant, capable of utilizing various fuels, including coal, husk, and briquettes. This addition enhances operational efficiency, reflecting AABL’s dedication to overall performance improvement. The ethanol plant aligns seamlessly with AABL’s current portfolio, serving as a supplier of high-quality Extra Neutral Alcohol (ENA) for its Indian Made Foreign Liquor (IMFL) products and other bottlers.

Financially, AABL reports robust performance for H1 FY24, with a revenue of INR 3,266 million and an EBITDA of INR 379 million, marking a YoY growth of 21.9%. With a net debt-to-equity ratio of 0.04x as of H1 FY24, the company maintains a strong balance sheet.

Prasann Kumar Kedia, Managing Director of AABL, expresses enthusiasm about this milestone, emphasizing the company’s commitment to sustainable energy. The Ethanol plant has already secured orders from Oil Marketing Companies (“OMCs”) for supply until April 2024, with a billing rate aligned with the revised rate of maize-based ethanol set by OMCs at INR. 71.86.

Kedia acknowledges the potential challenges during the initial phases but expresses confidence in the team’s ability to address them swiftly. He extends gratitude to stakeholders and the community for their support as AABL embarks on this exciting journey towards a greener and more sustainable future.