Policy Announcement Details

The Government of India has exempted petrol blended with 22%–30% ethanol (E22–E30) from excise duty and launched E85 fuel for flex-fuel vehicles. The Bureau of Indian Standards (BIS) has notified specifications for E22, E25, E27 and E30 fuel blends. These measures accelerate India's National Biofuel Programme and are expected to significantly increase ethanol consumption.

Almondz's Involvement in Ethanol Sector

Almondz Global Securities Limited participates in the ethanol manufacturing sector through its Special Purpose Vehicle Premier Green Innovations Private Limited (PGIPL), formerly known as Premier Alcobev Private Limited. Almondz holds a 40.99% equity stake in PGIPL, while Avonmore Capital & Management Services Limited (holding company of AGSL) holds an additional 8.88% stake. Together with promoter group interests, the Almondz Group exercises significant influence over PGIPL's strategic direction.

Manufacturing Capacity and Operations

PGIPL operates two grain-based ethanol production facilities:

  • Sansarpur, Himachal Pradesh: 285 KLPD installed capacity in District Kangra
  • Sambalpur, Odisha: 200 KLPD capacity that has started commercial production

Total installed capacity: 485 KLPD

Both plants are equipped with Zero Liquid Discharge (ZLD) infrastructure. PGIPL has been operational since 2015 and is the largest ethanol supplier in Himachal Pradesh. The company is empanelled with Oil Marketing Companies (OMCs) under the Government of India's Ethanol Blended Petrol (EBP) Programme.

Expected Benefits from Policy Changes

The policy changes are expected to create multiple growth opportunities for PGIPL:

  • Higher Ethanol Procurement: Progression from E20 to E30 blending could increase ethanol requirements by up to 50% per litre of blended petrol
  • Improved Capacity Utilisation: Operational facilities position the company to participate in rising procurement requirements
  • Revenue Growth Opportunities: Growing ethanol demand combined with expanded production capabilities provides opportunity to increase sales volumes
  • Enhanced Operating Leverage: Higher production volumes could improve operating efficiencies and profitability
  • Long-Term Demand Visibility: Policy certainty supports sustained investment and capacity utilisation

Management Commentary

Management stated that India's ethanol blending programme is "among the most transformative energy initiatives undertaken in recent decades." They believe the government's measures "create a clear pathway for significantly higher ethanol consumption across India" and will translate into "a larger addressable market, stronger demand visibility, improved capacity utilisation and the opportunity to scale revenues."

Company Background

Almondz Global Securities Limited is a diversified financial services company operating across three business verticals: Financial Services, Green Fuel Business, and Infrastructure Advisory. The financial services platform includes investment banking, corporate finance advisory, equity and commodity broking, wealth management and NBFC operations.