Olam Agri to Invest $60M in Bio-Ethanol Plant in Maharashtra

Global commodity leader Olam Agri is investing $60 million to set up a multi-input bio-ethanol facility in Rajgoli, Maharashtra. This new unit will complement the company's existing sugar factory, which has a daily crushing capacity of 4,000 tonnes.

Olam Agri’s investment is driven by India’s push for blended fuels, with mandates like the B10 to B20 fuel mix. According to Muthukumar Neelamani, Olam Agri’s Group CFO, the new distillery will allow flexibility, using corn as an alternative input when sugarcane production fluctuates. This strategic move positions the company to adapt to changing market conditions and government policies.

The bio-ethanol plant will effectively double Olam’s crushing capacity to 8,500 tonnes per day and is set to begin operations by March next year. The facility is part of Olam Agri’s broader strategy to expand in India’s growing biofuels market.

Olam Agri, headquartered in Singapore, is strengthening its presence in India. The company operates across 30 countries and deals in key commodities like rice, cotton, pulses, and bio-ethanol. “India is a key market for us, and we are expanding our footprint here,” Muthukumar noted.

In addition to bio-ethanol, Olam Agri is expanding its partnerships with farmer producer organizations (FPOs), particularly in rice and sugarcane. After a successful pilot with 6,000 farmers in Madhya Pradesh, the company is now working with six FPOs, benefiting around 11,000 farmers. Olam Agri aims to replicate this model in the sugarcane and corn sectors, promoting sustainable farming practices.

News by Rahul Yelligetti