India’s energy scenario is in the midst of a transformation of sorts with a greater focus on green and renewable sources. And here, ethanol is among the most sought-after solutions that is at the heart of India’s biofuel blending programme as well as a precursor to energy security and sustainable development. The Ethanol Manufacturing Companies in India sector is on the cusp of major growth, overall driven by government encouragement as well as increasing demand in transportation as well as chemicals. The emerging industry is luring massive investments and creating gigantic opportunities across the value chain.
The recent estimates indicate that the Indian ethanol market is due for a mammoth growth with more than a 10% Compound Annual Growth Rate (CAGR) in the coming years. This development is driven by an investment drive worth multi-billions of dollars aimed at expanding ethanol production capacity and meeting the ambitious goal of 20% mixing of gasoline with ethanol by 2025.
Read the complete article to know more about the ethanol manufacture companies in India.
Ethanol Importance in India's Energy Sector
Sugarcane Surplus & Rural Economy Boost
India grows a lot of sugarcane which helps its ethanol program. Since there is extra sugarcane prices can change a lot. The best Ethanol Manufacturing Companies in India production offer farmers a steady and profitable option.The biofuel which is the end product of this process will create a large number of jobs in rural areas leading to a 25% increase in income of the sugarcane farmers of the important areas in India. Major ethanol companies are tying up with sugar mills – a partnership that benefits the industry and farming. Some of them are in Maharashtra, Gujarat , Karnataka , Uttar Pradesh and Haryana.
Growth Story
This was a small move but the nation would expand it in the near future. This has a huge impact on GDP and creates jobs. This facility is there in Canada and makes ethanol using sugarcane and corn. Not only this one, they have a similar plant in Brazil and it has also a huge impact there. India plans to produce over 10 billion liters of ethanol each year soon. This shift will reduce India’s dependence on foreign oil by about 15-20% when the blending target is met. Many Top Ethanol Manufacturing Companies in India want to invest in this green energy and farmers see new ways to earn money in this growing ethanol market.
Government Incentives & Investor Confidence
The Indian government is supporting ethanol blending with helpful policies and financial incentives. This support has made investors more confident in the industry. For example there are loan interest reductions for building ethanol plants and good pricing plans that attract big investments. The government’s guidance is expected to bring in over ₹30, 000 crore (about $4 billion USD) for ethanol production in the coming years.
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Top 10 Ethanol Manufacturing Companies in India
Here is the list of one of the 10 best ethanol manufacture companies in India.
1. Shree Renuka Sugars Limited
Think of a company that started by making something we all enjoy – sugar – and then found they could do much more with the sugarcane plant! Shree Renuka Sugars is a leading name in India’s sugar industry, and they’ve wisely expanded their operations to produce a large amount of ethanol. Like many major manufacturers across India, they play a key role in the country’s ethanol blending program. It is one of the best ethanol manufacturing companies in India. In addition to making sugar and ethanol, they also generate power from leftover sugarcane.
Recently, Shree Renuka Sugars increased its ethanol production capacity to 1,250 KLPD from 720 KLPD, strengthening its contribution to India’s goal of 20% ethanol blending by 2025. Despite Q3 FY24 sales declining to ₹24,783M (vs. ₹30,097M) with a net loss of ₹2,036M (vs. ₹1,723M), the nine-month performance remained stable with sales at ₹78,761M, and net loss improving to ₹3,914M (vs. ₹5,154M).
Company Overview:
2. Bajaj Hindusthan Sugar Limited
This is Bajaj Hindusthan Sugar, part of the trusted Bajaj Group. In India, many people rely on this brand. They are among the biggest sugar producers in the country and have also become a key player in making ethanol. Most of their sugar mills are in Uttar Pradesh, often called the sugar bowl of India, providing them with a steady supply of materials needed for ethanol production. Known for their sugar, Bajaj Hindusthan Sugar’s move into ethanol strengthens its position as one of the best ethanol manufacturing companies in India.
The SEIA 2025 Awards honored excellence in the sugar and ethanol industry, recognizing top innovators and leaders. Bajaj Hindusthan Sugar Limited (BHSL), founded in 1931, is one of India’s largest integrated sugar mills. Renamed in 1988, it expanded in the 2000s, achieving global scale and efficiency, further cementing its leadership in the industry.
Company Overview:
3. Balrampur Chini Mills Limited
Balrampur Chini Mills is one of the top sugar and ethanol manufacturers in India. They operate with a philosophy of maximizing resources, utilizing sugarcane not only to produce the sugar we put in our tea but also the ethanol that fuels our vehicles. Their strong focus on sugar production ensures a steady and abundant supply of molasses, a key raw material for ethanol. This makes them one of the leading ethanol manufacturers in India.
Recently, sugar stocks rallied as the government approved an ethanol price hike. Balrampur Chini Mills saw a 5.3% rise to ₹504.95 on the BSE, further highlighting the growing importance of ethanol in the industry.
Company Overview:
4. Triveni Engineering & Industries Limited
Take the example of a company that is not only limited to sugar; they also build important machinery like turbines and gears. Triveni Engineering & Industries is a diversified conglomerate with strong interests in both engineering solutions and sugar production. Their incursion into ethanol production is a logical extension of their sugar business, where they take the molasses, a by-product of sugar production, and make ethanol.
They are a diversified company with several capabilities, all contributing to the various verticals of the Indian economy, from renewable energy in the guise of ethanol manufacturing companies in India. All such diversification positions them as a good business model and allows them to contribute value to India’s growth story across various verticals.
Recently, Triveni Engineering reported a 3.6% revenue increase for the nine months ending December 31, 2024, reaching ₹4,060 crore, driven by strong performance in its power transmission and water business segments. Triveni continues to strengthen its market position through expansion and innovation.
Company Overview:
5. Dhampur Sugar Mills Limited
Let’s take an illustration of a company that has been a part of India’s agrarian landscape for centuries, having witnessed the oscillations through the times. Dhampur Sugar Mills is one of the oldest and most prestigious sugar manufacturers in India. They’re a big player in Uttar Pradesh and have managed to successfully diversify into the business of manufacturing ethanol too.
They are similar to an established old company that not only endured through the periods but also diversified into new opportunities in renewable energy. It is one of the best ethanol manufacturing companies in India. Their established history of sugar production makes them deeply connected to raw materials and the ethanol production system, making them a dependable player in the industry.
In 2025, Dhampur Sugar Mills expanded its ethanol production capacity by over 50%, supporting India’s 20% ethanol blending target. By utilizing multiple feedstocks like sugarcane juice, molasses, and grains, the company ensures year-round production. A government-approved ethanol price hike further boosted profitability, with its stock surging nearly 11% to ₹157.9. These strategic moves reinforce Dhampur Sugar Mills’ role as a key contributor to India’s renewable energy landscape.
Company Overview:
6. Mawana Sugars Limited
Consider a company that is truly concerned with ensuring that they are producing high-quality sugar as well as a good quantity of ethanol effectively. Mawana Sugars is yet another significant Indian sugar industry player with a growing focus on producing ethanol. They possess well-integrated plants that enable them to convert sugarcane into sugar and ethanol in a seamless process.
It is among the top ethanol manufacturing companies in India. They’re sort of like a business that closely monitors how they utilize their resources so that they can get the most out of the sugarcane they crush. Their focus on efficiency and quality makes them a great asset to India’s ethanol blending scheme and the nation’s overall renewable energy initiatives.
Mawana Sugars operates a distillery in Nanglamal (Meerut) with a daily ethanol production capacity of 120,000 liters, supplying fuel ethanol for blending with petrol. In January 2025, the company approved a ₹113.9 million investment in a bagasse-saving project aimed at reducing steam consumption and improving milling operations, further enhancing ethanol production efficiency. Their dedication to quality was recognized at the SEIA 2025 ceremony, where they received the award for Best Quality in Specialized Sugar.
Company Overview:
7. KCP Sugar and Industries Corporation Limited
Suppose there is a company with a well-established base in the southern region of India, renowned for making quality sugar and effectively producing ethanol. KCP Sugar and Industries Corporation is a well-rooted player in the sugar business, with the majority of its operations based in Andhra Pradesh. Considered as one of the Ethanol Manufacturing Companies in India, They’ve strategically expanded into ethanol manufacturing in India, efficiently utilizing the sugarcane cultivated in the region.
They are more like a company with a strong indigenous presence while also making significant contributions to the national ethanol market. Their long tradition and emphasis on quality have established them as a secure player in the Indian sugar and ethanol industries.
Recently, KCP Sugar reported a 1.7% year-over-year increase in consolidated net sales, reaching ₹84.06 crore for the quarter ending December 2024. These updates highlight KCP Sugar’s continued efforts to enhance shareholder value while maintaining its strong position in the competitive sugar industry.
Company Overview:
8. Ugar Sugar Works Limited
Imagine an establishment that is old and has been doing business sustainably, producing both sugar and ethanol. Ugar Sugar Works is a long-established sugar concern that has stood the test of time and evolved into a major ethanol producer. They are committed to maintaining high levels of quality and efficiency in their production process.
They are like a business that respects its heritage while embracing contemporary demands, ensuring they remain a viable and responsible player among the leading ethanol manufacturing companies in India. Sustainability remains a core part of their operations and future strategy.
Recently, Ugar Sugar Works was recognized for its excellence, receiving the Most Efficient Sugar and Ethanol Production Technology award, presented by Bollywood actress Hina Khan. Additionally, the company reported consolidated net sales of ₹84.06 crore for the quarter ending December 2024, marking a 1.7% year-over-year increase. These achievements further reinforce its commitment to innovation, efficiency, and sustainability in the sugar and ethanol industry.
Company Overview:
9. Dalmia Bharat Sugar and Industries Limited
Consider a business that’s possessed by a large and largely rewarded Indian empire with a growth mindset and strong values. Dalmia Bharat Sugar and diligence is a top assiduity player in the sugar and ethanol diligence, supported by the largely regarded Dalmia Bharat Group. They operate several sugar manufacturers and distilleries across India and are honored for their emphasis on sustainability and functional excellence. They’re a strong association with a well- defined vision for the future which appreciatively encourages India’s renewable energy dreams by producing ethanol. They’re secure and retain the coffers and powers to extend their ethanol- related operations since they’re backed by a strong association.
Company Overview:
10. Associated Alcohols & Breweries Limited
Consider a business that started out producing alcoholic drinks for human consumption before branching out to produce ethanol for use in industry and as fuel. In addition to producing country liquor and Indian Made Foreign Liquor (IMFL), Associated Alcohols & Breweries has made a strong name for itself in the ethanol industry. They are one of those Top Ethanol Manufacturing Companies in India that has expanded and diversified, leveraging its experience in the production of alcohol to also enter the expanding Indian market for ethanol. They can cater to various market niches and support the beverage and renewable energy industries thanks to diversification. They have demonstrated flexibility in navigating the industry’s shifting demands.
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Ethanol Manufacturing Process in India
- Sugarcane Crushing and Molasses Making: We crush the sugarcane first to get the juice. We extract sugar from the juice. The residual thick gooey stuff is molasses after removing sugar. That’s our raw material to produce ethanol. Literally, think of molasses as the sweet byproduct when table sugar has been taken away. It’s a waste being utilized very nicely now.
- Fermentation: We then store this molasses in huge tanks. We add yeast, tiny little living things, to the molasses. The yeast feed on the sugar in the molasses and release alcohol (ethanol). Fermentation is really similar to how we make wine or beer, only that we don’t consume it, but rather use it as fuel.
- Distillation: Then, after fermentation, we have a liquid solution of water and ethanol. To separate the ethanol, we undergo a method called distillation. It’s a method of heating the combination, and since ethanol boils earlier than water, the ethanol comes out first through evaporation. We allow it to cool down, and once again it gets converted into liquid ethanol. Distillation is a type where we separate the good from the evil, so we obtain pure ethanol.
- Grain-Based Ethanol: We even utilize broken rice or rotten corn at times to make ethanol. We crush the grains into sugars and employ the same process of distillation and fermentation. It is a great way of utilizing surplus grains and not wasting them.
Government Policies and Regulations
- National Policy on Biofuels 2018: The policy lays down guidelines for biofuel products and operations including ethanol, with a vision of 20 gasoline- blending with ethanol by 2025.
- Ethanol Blended Petrol (EBP) Programme: The government prefers blending petrol with ethanol to prevent pollution and minimize oil importation. It has a target for the proportion of ethanol blended with petrol. It is a national initiative to consume more renewable fuel, which is cleaner and healthier for our economy.
- Financial Assistance and Incentives: The government assists with funds and other incentives to companies that construct ethanol factories. It is this that motivates other companies to get into producing ethanol. It is as if the government is extending a helping hand towards the growth of this sector.
- Stable Price: The government is offering ethanol at a good price, so companies can be assured that they will receive a good rate of return on their investment. It is less risky for companies and will make companies invest. Stable prices allow companies to plan and expand.
Ending Note
Indian ethanol production is increasing rapidly with the presence of Ethanol manufacturing companies in India. It is a competitive industry. Numerous sugar mills are incorporating ethanol production into their activities. Meanwhile new firms are employing new methods to produce ethanol from various sources. As India approaches its ethanol blending goals the farm manufacturing industry will be an important factor in determining the energy landscape of the future. This will enhance energy security and lower greenhouse gases.
FAQs
What is India's primary feedstock for ethanol?
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What is the government plan for ethanol blending in petrol?
20% by 2025.
Are there any economic benefits in setting up ethanol plants?
Yes, monetary incentives in terms of interest subvention on lending are given by the government.
What are the environmental advantages through ethanol blending?
It normally reduces greenhouse gas emissions and fossil fuel reliance
