Avonmore Capital & Management Services Limited (ACMS) submitted a press release pursuant to Regulation 30 of SEBI LODR Regulations regarding the company's positioning to benefit from India's ethanol policy expansion.

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. These policy initiatives mark a major acceleration of India's National Biofuel Programme and are expected to significantly increase ethanol consumption across the country.

Strategic Positioning through Subsidiary

ACMS participates in the ethanol manufacturing sector through its Special Purpose Vehicle Premier Green Innovations Private Limited (PGIPL), formerly known as Premier Alcobev Private Limited. ACMS holds 8.88% equity stake in PGIPL, while its subsidiary Almondz Global Securities Limited holds an additional 40.99% stake. Together, the Group exercises significant influence over PGIPL's strategic direction.

Manufacturing Capacity

PGIPL operates two ethanol production facilities:

  • Sansarpur, Himachal Pradesh: 285 KLPD grain-based distillery
  • Sambalpur, Odisha: 200 KLPD facility that has started commercial production

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

Policy Impact and Growth Opportunities

The Bureau of Indian Standards has notified specifications for E22, E25, E27 and E30 fuel blends. The progression from E20 to E30 blending levels could potentially increase ethanol requirements by up to 50% per litre of blended petrol. This creates:

  • Higher ethanol procurement by OMCs
  • Improved capacity utilisation opportunities
  • Revenue growth opportunities through increased sales volumes
  • Enhanced operating leverage through fixed cost spreading
  • Long-term demand visibility through policy certainty

Management Commentary

Management stated that India's biofuel transition is gathering unprecedented momentum and the government's commitment to higher ethanol blending creates a strong foundation for long-term industry growth. They believe PGIPL is well positioned with its operational facilities to participate in this growth phase, supporting India's energy security and sustainability objectives.

Company Business Verticals

ACMS operates across four key business verticals:

  • Financial services (Wealth advisory/Broking)/Corporate Advisory/Merchant Banking with Debts & Equity Operation
  • Green Fuel Business
  • Infrastructure Advisory Business
  • NBFC Activities