1. Country liquor TETRA pack expansion - A new TETRA pack machine has been installed, expanding country liquor production capacity to captively consume maximum C-heavy molasses in-house. This removes the margin leakage of selling low-value molasses externally and lifts overall distillery profitability.
2. Ethanol blending policy tailwind - The Government has permitted ethanol production from sugarcane juice, sugar syrup, and B-heavy/C-heavy molasses without quantitative restrictions for ESY 2025-26, while discussions on E85 and E100 fuels signal a structural demand shift. A binding blending mandate opens a large, price-stable revenue stream that reduces dependence on cyclical sugar prices.
3. Bagasse-to-ethanol R&D - Ongoing R&D targets cost-effective production of 2G ethanol from bagasse, a feedstock the company already generates in-house. Commercial success would convert a waste stream into a high-margin fuel product with no additional feedstock cost.
4. Energy cost reduction - Capital investment of ₹12.1 crore in energy conservation equipment, including a falling film evaporator and process modifications to substitute rice husk/firewood with bagasse, has reduced fuel cost. Lower variable cost per unit of sugar and alcohol produced directly expands operating margins.
5. Premium sugar products - The company introduced Icing sugar and Demerara sugar during the year. Premium products carry higher realisations than bulk white sugar, improving the segment's blended margin.
6. Cane acreage and recovery focus - Management's stated priority is expanding cane acreage through farmer engagement and enhancing productivity and recovery rates. Higher cane throughput and improved recovery directly lift sugar volumes and reduce per-unit fixed cost absorption at Daurala.