Uttam Sugar Mills Limited has informed the Exchange about General Updates
UTTAMSUGAR · price
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Awaiting price reaction for this filing.
Uttam Sugar Mills informed exchanges that its subsidiary Uttam Distilleries Limited (UDL) will expand its ethanol (distillery) capacity from 40 KLPD to 160 KLPD, a 4x increase. The existing plant is already running at 95% utilization. The expansion will cost Rs. 110 Crore, funded through a mix of internal funds, promoter contribution and loans, and is targeted for completion by March 2027. The move is driven by the Government of India's ethanol blending programme and rising national ethanol demand. The disclosure is being made under SEBI's specific circular for material events, indicating the capex is significant relative to the company's size.
Positive for long-term growth as capacity will quadruple to capture rising ethanol demand from India's fuel-blending policy. Near-term impact may be muted due to debt funding and a long execution timeline (about 18 months), but the high existing utilization (95%) signals strong revenue visibility once expanded capacity comes online.