Primarily derived from sugar cane, ethanol is manufactured in India and finds applications in plastics, polishes, plasticizers, pharmaceuticals, cosmetics, and alcoholic drinks. Hence, India’s top sugar producers are also among the world’s leading producers of ethanol. India is among the top importers of petroleum products worldwide, importing 82% of its crude oil. We have examined the Ethanol stocks in India in this blog post, as well as highlighting a few popular and rapidly growing Ethanol stocks in India. So continue reading to learn more about the same!
Some of the Best Ethanol Stocks in India 2023
Let us review the best Ethanol stocks in the Indian market now that we have a better understanding of this industry.
|Shree Renuka Sugars
|Bajaj Hindusthan Sugar
|Dhampur Sugar Mills
|Dwarikesh Sugar Industries
|Dalmia Bharat Inds
Factors to Consider Before Investing in Top Ethanol Stocks in India
- Dependency on The Sugar Industry: Ethanol stocks are largely influenced by the sugar sector, which is highly dependent on the monsoon, irrigation, and general availability of water. Sugarcane is a crop that requires a lot of water, so its availability is impacted by water scarcity.
- Rising Demand: An energy source that is better for the environment is ethanol. When it comes to energy sources, ethanol is more environmentally friendly than other fuels like crude oil. Consequently, there is an increased demand for ethanol, particularly in countries such as China where there is a trend towards the use of biofuels. Future demand speculation is one of the primary drivers of ethanol stocks investment.
- Diversification of Portfolio: A diverse range of equities and bonds are often included in the portfolios of many investors. However, a broad portfolio can guard against extreme changes because you can distribute your money across a variety of investments. Investing in ethanol stocks is a straightforward method of diversification.
- Protection from Inflation: Many investors allocate a sizable amount of their capital to commodities as inflation protection. Inflation is the gradual decrease in the value of money over time. Therefore, it stands to reason that some commodity prices, like the price of ethanol stocks, will rise in tandem with growing inflation rates.
- Massive Industry: Buying stock in companies that engage in all or part of the processes involved in the manufacturing of ethanol is a convenient and indirect way to invest in the industry.
The share prices of businesses that depend significantly on the sale of ethanol will most likely change in lockstep with the price of ethanol. The ethanol sector is so big that there are a lot of stocks in it.
Top Listed Ethanol Stocks in India: An Overview
1) Shree Renuka Sugars: Frequently featured among the best Ethanol stocks in India, Shree Renuka Sugars Limited is an Indian agribusiness and bioenergy company. The business generates electricity in addition to producing, trading, refining, and producing sugar. Shree Renuka Sugars Ltd., based in Mumbai, Maharashtra, refines 4,000 tons of sugar per day and is the biggest producer of ethanol in India. It made up 20% of India’s sugar exports to other nations in 2019. Its trade, distillery, cogeneration, sugar milling, and refining businesses are among them. Moreover, sugar, ethanol, power, and organic manure are among the company’s offerings
2) Bajaj Hindusthan Sugar: A holding company for sugar that is integrated is Bajaj Hindusthan Sugar Limited. The company makes alcohol, sugar, and power. Located in the northern Indian state of Uttar Pradesh, Bajaj Hindusthan Sugar Limited (BHSL), the country’s most well-known and fourth-largest integrated sugar producer, runs 14 facilities with a combined capacity of 800 kiloliters per day (KLD) and 136,000 tonnes crushed per day (TCD) (UP). Sugar, Distillery, Power, and Others are the company’s segments.
3) EID-Parry (India): An Indian company called EID–Parry (India) Limited is focused on making sugar and nutraceuticals. The company produces biopesticides and is involved in the agriculture inputs business through its subsidiary, Coromandel International Limited. East India Distilleries Parry Limited is a publicly traded corporation that has been in operation for more than 225 years, with its headquarters located in Chennai, Tamil Nadu. It has achieved many firsts, such as the manufacturing of fertilizer on the Indian subcontinent for the first time. Among its segments are Nutraceuticals, Distillery, Sugar, Co-Generation, and Crop Protection. Furthermore, it offers specific pharmaceutical sugar grades for use in a range of pharmaceutical applications, such as drug delivery systems, liquid orals, tablet coatings, and dry syrups.
4) Dhampur Sugar Mills: Dhampur Sugar Mills Limited is an Indian integrated sugarcane processing company that manufactures and markets sugar, electricity, and chemicals. The Sugar, Power, Chemicals/Ethan, and Others segments comprise the corporation.
5) Dwarikesh Sugar Industries: Dwarikesh Sugar Industries Limited is an integrated conglomerate firm based in India that specializes in the manufacturing of sugar and related items. The company is divided into three segments: sugar, cogeneration, and distillery. Moreover, the 1933-founded Dhampur Sugar Mills manufactures chemicals, plantation white sugar, and ethanol. Mr. V.K. Goel, the chairman, is in charge of managing the company. The company also cultivates hand sanitizer. The Company’s sugar manufacturing plants have a combined daily output capacity of approximately 21,500 tonnes of sugarcane
6) Dalmia Bharat Inds: Sugar is produced by Dalmia Bharat Sugar and Industries Limited. The company also sells industrial alcohol, sugar, power, and refractory goods, among other commodities. The company’s three operating segments are Others, Power, and Self-Manufactured Sugar. The Dalmia Bharat Group was established in 1939 by the late Shri Jaidayal Dalmia. The organization has been in business for more than 80 years, and it currently has leading positions in important industries like cement, sugar, and refractories.
7) Globus Spirits: The manufacture and distribution of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), bulk alcohol hand sanitizer, and franchise bottling are among the main operations of the Indian company Globus Spirits Limited. Businesses involved in manufacturing and consumer goods are divided into distinct business categories. One of the major participants in the alcohol industry in North India is Globus Spirits Limited. Foreign liquor made in India (IMFL), rectified spirits, and extra-neutral alcohol country liquor are among the industrial alcohol products that the company produces, markets, and sells.
8) Triveni Engg: Triveni Engineering and Industries Limited is an Indian firm whose primary commercial activities fall into two categories: engineering business and sugar and related companies. An Indian conglomerate with a variety of engineering and sugar industries, Triveni Engineering & Industries Limited (TEIL) has its headquarters in Noida, India. The company produces sugar, alcohol, and ethanol in addition to working in power cogeneration, power transmission, industrial gearboxes and gears, water purification technologies, defense, and FMCG brands. It is the second-biggest sugar producer in India.
In summary, ethanol is a vast megafuel. It can save the environment and cut the expense of importing oil by billions of dollars. Here is where we wrap off our review of the top Ethanol stocks in India for 2023. The government’s financial incentives combined with the overall increase in demand for ethanol could make Indian ethanol producers the underdogs in the future years.