Grainspan Commits INR 520 Cr to Ethanol Capacity in Gujarat

17-Jun-2025

Key Takeaways:

Grainspan Nutrients has invested INR 520 crore in two grain-based ethanol plants in Ahmedabad, Gujarat, with a total capacity of 350 KLPD.
The first plant, operational since May 2023, is Gujarat’s first grain-based ethanol facility, using maize and rice as feedstock.
The second, larger plant, was commissioned in May 2025 with a INR 360 crore investment and a 240 KLPD capacity.
The company supplies ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme, with expected revenue exceeding INR 800 crore in the next Ethanol Supply Year (2024–25).
Grainspan’s entry into ethanol production has helped boost its turnover by 20%, achieving INR 758 crore in the last fiscal year.

Two Grain-Based Ethanol Units Power Expansion, Supply to OMCs

Grainspan Nutrients Pvt. Ltd. has invested INR 520 crore in two grain-based ethanol plants in Ahmedabad, Gujarat, boosting its total installed capacity to 350 kiloliters per day (KLPD). These projects are aligned with India’s Ethanol Blending Programme and reinforce the company’s diversification from food ingredients into renewable fuels.

The first unit, Gujarat’s inaugural grain-based ethanol plant, was commissioned in May 2023 at Bhamsara village with a 110 KLPD capacity. It uses maize and rice as feedstock and was funded partly by a INR 120 crore loan under the Centre’s interest subvention scheme.

Encouraged by this success, Grainspan launched a second ethanol facility at the same location in May 2025. The new plant, set up at a cost of INR 360 crore without subsidy support, adds 240 KLPD capacity and brings the total production to 350 KLPD across both units.

Fueling Growth: Operational Output and Revenue Boost

According to CFO Pankit Shah, both ethanol plants are fully operational and supplying fuel-grade ethanol to Oil Marketing Companies (OMCs) at a fixed rate of INR 72 per liter. In the current Ethanol Supply Year (ESY 2024–25), the company expects to deliver around 8 crore liters to OMCs, targeting a topline of over INR 800 crore in the next cycle.

Last fiscal, Grainspan recorded INR 758 crore in revenue, with INR 342 crore from ethanol and INR 416 crore from its core food ingredients business. This marked a 20% year-on-year increase in turnover.

Leading Gujarat’s Green Fuel Shift

Grainspan CEO Manoj Khandelwal noted the company was the first to set up a grain-based ethanol plant in the state and now operates two of the three such facilities in Gujarat. “India has significant untapped potential in ethanol—both for domestic use and export,” he said.

The national ethanol blending average has reached 18.74% in the current year, with Gujarat contributing nearly 33 crore liters to this effort so far. Grainspan’s rapid expansion highlights the role of targeted incentives: the central government’s ethanol interest subvention schemes, which began in 2018 and now support both sugarcane- and grain-based ethanol production, have catalyzed similar projects across India.

With grain-based distillation capacity in the country now at 858 crore liters, Grainspan’s investments underscore its long-term commitment to clean fuel production and energy diversification.

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