Ethanol Boom: StockEdge Spotlights Balrampur Chini, EID Parry

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With demand set to triple and strong government backing, ethanol stocks emerge as green gold—Balrampur Chini and EID Parry lead the charge

By S Jha

MUMBAI, July 5, 2025 – As India powers ahead toward its ambitious 20% ethanol blending target by 2025, StockEdge highlighted two key players poised to benefit from this green energy transition: Balrampur Chini Mills and E.I.D. Parry (India) Ltd.

From curbing fuel imports to boosting farmer incomes, ethanol is emerging as a game-changing fuel. “With ethanol blending touching 18.2% in December 2024, up from 10.7% the previous year, the momentum is strong,’ said the Kolkata-based brokerage firm in a blog shared on its Telegram channel.

The government’s Ethanol Blended Petrol (EBP) Programme has provided a tailwind, offering interest subvention and assured procurement by oil marketing companies (OMCs).

“India’s ethanol demand is projected to triple from 4.5 billion litres in 2023 to 13 billion litres by 2029, driven by the push for cleaner fuel,’ added StockEdge. Ethanol burns cleaner than petrol, reducing harmful emissions, and contributes to India’s net-zero goals while bolstering rural economies.

🌾 StockEdge’s Top Ethanol Picks

Balrampur Chini Mills Ltd (BCML): A Sweet Spot for Green Growth

One of India’s largest integrated sugar producers, Balrampur Chini is turning heads with its aggressive ethanol strategy. “With 10 integrated units, massive crushing and distillation capacities, and power generation from bagasse, BCML is betting big on ethanol as a future revenue engine, aiming for it to contribute up to 35% of total revenues,’ said StockEdge.

The company is also diversifying into Poly Lactic Acid (PLA) bioplastics, with a ₹2,850 crore project in collaboration with global technology firms Sulzer AG, Alpine Engineering GmbH, and Jacobs. “Over ₹685 crore has already been invested, and the PLA unit is expected to be operational by H2 FY27—a bold move that could make BCML a pioneer in green chemistry,” wrote Vineet Patwari in the blog.

E.I.D. Parry (India) Ltd: Powering Through with Biofuel and Innovation

Despite facing a weak Q3 FY25—marked by lower sugar release quotas and high cane costs—EID Parry remains a key player in India’s ethanol play. “The company operates six sugar mills with a crushing capacity of 40,800 TCD and five distilleries with a capacity of 582 KLPD,” added the blog.

Its focus lies in scaling distillery output and leveraging the EBP opportunity. “EID Parry also benefits from its diversified presence in farm inputs and nutraceuticals through subsidiaries like Coromandel International and US Nutraceuticals Inc,” noted Patwari in the blog.

While recent financials saw a dip in margins, management remains optimistic. Future capital allocation will emphasize ethanol blending and consumer product expansion, aligned with a sustainable policy framework.

💡 Why Ethanol Stocks Make Sense

Strong government support through financial incentives and procurement guarantees
Massive demand growth—projected 3x increase by 2029
Environmental impact—lower emissions, improved air quality
Rural empowerment—higher farmer incomes and sugar sector revival

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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