SVP to set up Rs 40 cr plant in UP for ethanol production
New Delhi, May 11 (UNI) SVP Industries Ltd, a liquor company, today said it will set up a Rs 40 crore ethanol plant with capacity of 40,000 litres per day at Muzzafarnagar in Uttar Pradesh early next year.
Ethanol to be produced in the plant would cater to the growing demand, created by the use of a petrol-ethanol blend that the government has permitted.
''With the government permitting mixing of 5 per cent ethanol in fuel petrol, 490 million litres of ethanol would be required between 2005-06 all over India which is likely to scale up to 750 million litres by 2009-10 and we would cater to this demand''said SVP Industries President Ajay K Swarup.
A company official said that an additional 15 crore would be invested for setting up ancilliary plants, including bottling.
''We have already applied to the relevant authorities for being listed and around Rs 38 to 44 crore will be raised through IPOs. The rest of the money would be raised through internal accruals and loans'', the official added.
The company already has a 50,000 litres alcohol production plant in Muzzafarnagar.
My Swarup said that they would go in for production of alcohol from grains for the high end market thus moving away gradually from the mollases based alcohol which they so long produced.
After the setting up of the ethanol plant their total production would include, 40,000 litres of ethanol, 30,000 litres of alcohol which they would sell under their own brand names and 20,000 litres of alcohol which they they would produce for companies with which they have manufacturing and bottling tie ups.
SVP is a family run company incorporated in 1961 with their own brands of whisky and vodka and with manufacturing and bottling tie up with McDowell&Co.
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