Zuari Industries rallies 5.5% post MOU signing with Envien Group

The JV will have a capacity of 150 kilo litres per day (KLPD) Ethanol distillery.

Zuari Industries Limited, the group holding company for the Adventz Group announced in a press release on September 06, that a Memorandum of Understanding (MOU has been executed on September 05 between the company, Envien International Limited, Malta (EIL) and Zuari Envien Bioenergy Private Limited (ZEBPL) to build and operate a biofuel distillery and further explore the organic and inorganic business opportunities in the biofuel space in India.

Accordingly, ZIL and EIL have consented to establish a 50:50 joint venture with the objective of designing, constructing, commissioning and operating a 150 kilo litres per day (KLPD) Ethanol distillery and selling the same to Oil Marketing Companies (OMCs) to meet their blending requirements. The distillery will also have the flexibility to vary the product mix and manufacture Extra Neutral Alcohol (ENA) or any other suitable product based on the market need and requirement.

It is noteworthy that this MOU is an extension of an earlier signed MOU between the Company and M/s AZV (an Envien Group company) for setting up a sugarcane juice based 210 KLPD ethanol plant.

The company is also working on increasing the capacity of its existing 100 KLPD molasses/sugarcane juice-based plant to 125 KLPD, which is expected to start commercial production in the next crop season.

Formerly known as Zuari Global Ltd, Zuari Industries is a holding company and has a large portfolio of subsidiaries and associates and predominantly concentrates on investment in the group companies and is engaged in real estate, investment services, engineering services, management services, manufacturing and trading of furniture, manufacturing and sale of sugar and its by-products, ethanol and generation of power.

At 12.15 pm shares of Zuari Industries were quoting Rs 182.15 with a gain of 2.88% or Rs 5.10 a piece over its previous close. The stock has a 52-week high and low of Rs 216.85 and 122.65, respectively.