Oasis Group to invest Rs 500 cr for setting up ethanol plant

Oasis Group is planning to invest Rs 500 crore for establishing a wheat-based ethanol plant with capacity of five lakh litres per day at Ferozepur in Punjab. At present, mostly sugar mills are producing ethanol in the country, which is being sold to the petroleum companies. The Centre has fixed the target of mixing up to 10 percent ethanol in petrol, but so far it has achieved only 2.5 percent blending.

"Oasis Group is planning to set up an ethanol plant with the total investment of Rs 500 crore. The plant will be established at its current unit, Malbros International, at Zira in District Ferozepur in Punjab," Oasis Group Chairman and Managing Director Deep Malhotra said. In the first phase of manufacturing, the production capacity would be 2.5 lakh liters per day and in the final phase, it would be taken to five lakh liters per day.

The ethanol will be produced using wheat, which is unfit for human consumption, he added. The group operates five distilleries across the country with a collective production of about 20 crore litres of grain-based extra neutral alcohol. The group is in the process of launching a tripled distilled green apple and orange flavored Vodka in the premium segment shortly, besides a premium grapes spirit brandy for the South Indian market.

The company had reported a turnover of Rs 1,500 crore in 2014-15 and aims to achieve Rs 2,000 crore by the next financial year.