DAVANGERE
SUGAR (BSE: 543267 NSE: DAVANGERE) witnessed extremely
strong upmove in yesterday’s session backed with good volumes, the stock price
rose by nearly 10%. Arihant Capital one of the leading broking houses did buy
over 2 cr shares from the open market in Davangere Sugar.
Recently,
Promoter did raise funds of nearly Rs 150 cr, to cut debt and boost
profitability as well as improve the Balance sheet of the company. Promoter
infused funds worth 44 cr in to the company ad also bought nearly 10 lk shares
from the open market. This infuses confidence among the investor community.
Long term growth story of the company remains intact.
Growth
triggers and fundamentals
●
Ethanol capacity expansion from 65 KLPD to 85
KLPD in FY25 and further to 110 KLPD
●
New 35 TPD CO₂ recovery plant creating an
additional revenue stream
●
Diversification into broken rice and maize
procurement with scope for grain trading
●
Cane crushing target of 5 lakh MT annually
supported by farmer incentives and advanced agronomy programs
●
Additional adjacent land available for future
expansion
●
Significant debt reduction, improving
profitability and balance sheet strength
●
Operational efficiency improvements through
mechanised harvesting and transport subsidies
Ethanol
Growth Outlook
●
FY26 focus: Ethanol production from maize
& damaged grains till October
●
Benefiting from E20 blending push, soft loans
& state incentives
●
Positioned to scale with FFV-led ethanol
demand surge
Strategic
Focus on Ethanol & Maize Procurement
In
alignment with national policy encouraging ethanol production from maize, DSCL
is actively scaling up maize procurement from multiple regions. This initiative
supports the Government of India’s ethanol blending goals and is strengthened
by the establishment of a National Coordinating Agency through NAFED, enhancing
farmer-to-factory supply chains.
Strengthening
Farmer Partnerships
To
secure raw material availability and support farmer welfare, DSCL has
introduced several key initiatives:
Subsidised
sugarcane seed and input distribution
Plantation
subsidies to incentivize acreage expansion
Target
of cultivating 15,000 acres of sugarcane in the upcoming season
Additionally,
the company is expanding sugarcane cultivation into traditionally non-cane
growing areas, bringing new communities into the value chain. Farmers are
supported with timely payments, access to credit, and training in modern
agricultural practices.
Robust
Infrastructure Enabling Scale
DSCL
operates a fully integrated facility in Kukkuwada, Karnataka, featuring:
6,000
TCD sugar crushing capacity
65
KLPD ethanol production unit
24.45
MW cogeneration power plant
165
acres of land housing five warehouses with 60,000 tonnes of storage capacity
This
infrastructure ensures consistent supply, operational resilience, and the
ability to meet growing market demand.
Commitment
to Sustainability and Regional Development
DSCL
promotes a Zero Waste approach and actively invests in Green Energy initiatives.
Beyond its core business, the company contributes to regional growth by
generating employment and uplifting rural economies. Its integrated,
sustainability-driven model delivers long-term value for all stakeholders.
About
Davangere Sugar Company Limited (DSCL)
Established
in 1970, Davangere Sugar Company Limited (DSCL) is today a leading player in
the sugar industry. The Karnataka-based company has evolved from a traditional
sugar manufacturer into a diversified enterprise contributing to India’s green
energy goals. With a legacy spanning over five decades, DSCL has diversified
operations encompassing sugar manufacturing, ethanol production, and
co-generation of power. The company’s efforts in ethanol production and
cogeneration reflect its commitment to sustainable development and circular
economy practices.