India Ethanol Scenario Pramod Pillai 22nd Feb 2014
Key events
India • Sugar price decontrol • Govt. announces bail-out package for Sugar Industry. • 5% mandate for fuel ethanol in India, 10% under review. • New ethanol procurement price at Rs. 41/liter. • Growth in Potable Alcohol slows in the southern India
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Potable sector will continue to drive demand
Year
Ethanol demand Ethanol demand for for IMFL – CL – Million Ltrs Million Ltrs
Denatured spirit demand – Million Ltrs
Fuel Ethanol Demand @ 5% blending – Million Ltrs
Total Ethanol demand – Million Ltrs
2014
1333
753
827
1050
3963
2015
1672
878
1001
1145
4696
2017
2097
1025
1211
1338
5671
Potable sector demand = 3.12 Billion Ltrs
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• IMFL Market Growth estimates @ ~10% annum • Country Liquor Market growth estimates @ 8% in India • Denatured Spirit demand is estimated to rise by 10% YOY www.praj.net
As per 20% mandate, demand = 5.3 Billion Ltrs
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Installed Base - India Number of Plants Installed Capacity – 22138 KLPD
450 400 350
Molasses Grain
105 29.40 %
300 250 Grain Molasses
200 150
283
70.60 %
100 50 0 2013
• Plant operations have increased to anywhere between 260-300 days a year. • Plant sizes are getting larger to improve viability © Praj Industries Ltd
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Fuel Ethanol Installed Base- India Installed Base - ~ 2 Bln Liters.
5.1 114
Jammu and Kashmir
175
Uttar Pradesh
93
735
Bihar Gujarat Maharashtra Andhra Pradesh
574.2
Tamilnadu 156.3
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Karnataka 66
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State wise Fuel Ethanol Demand- India Key States
Fuel Ethanol Demand- Mln Liters per annum (5% blending)
AP
80
TN
100
Karnataka
72
Maharashtra
140
UP
110
Others -
502
Total
1050
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Ethanol Demand V/S Supply - India
• On Jan 2013, oil companies floated a tender for supply of 398 Mn liters of ethanol , delivered – 235 Mn Liters • On July 2013, oil companies floated a tender for supply of 245 Mn liters of ethanol- 60 Mn Liters delivered
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Molasses & Cane Production - India
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Thank you
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