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Fueling growth, sustaining communities: Davangere Sugar rides policy tailwinds with Ethanol and Zero-Waste Integration

Davangere Sugar Company Limited is entering a decisive phase of expansion, propelled by supportive government policy, surging ethanol demand, and enduring farmer partnerships.

Headquartered in Karnataka and backed by five decades of operations, the company has grown into a fully integrated enterprise spanning sugar, ethanol, and renewable energy. It manufactures white crystal sugar from sugarcane with a crushing capacity of 4,750 TCD, operates five warehouses with a combined storage capacity of six lakh quintals, and runs a 24.45 MW co-generation facility. Its operations are supported by an advanced Effluent Treatment Plant, ensuring that growth is underpinned by eco-friendly practices and zero-waste principles.

Ethanol has emerged as the centrepiece of DSCL’s growth strategy. The company operates a 65 KLPD dual-feed ethanol plant capable of using sugar syrup, molasses, and grain, producing 1.73 crore litres of ethanol in FY25. Capacity expansion to 85 KLPD is underway and targeted for completion in 2025, with a further ramp-up to 110 KLPD in the pipeline.

Complementing this is a 35 TPD carbon dioxide recovery facility, designed to enhance efficiency and add fresh revenue streams. By widening its feedstock base to include broken rice and maize, DSCL is building resilience and laying the groundwork for a grain trading vertical with significant commercial potential.

Financially, the company closed FY25 with revenues of Rs 21,498.53 lakh, EBITDA of Rs 5,227.90 lakh, and profit after tax of Rs 1,083.11 lakh. This performance underscores the strength of its integrated model and provides a solid foundation for its next cycle of expansion.

Alongside ethanol expansion, the company is intensifying its push in sugarcane cultivation. A targeted 15,000-acre increase this year is being supported through mechanised harvesting, structured transport systems, and performance-linked incentives designed to lower costs, improve productivity, and raise farmer incomes. These measures are expected to lift cane crushing consistently above 5 lakh metric tonnes, reinforcing DSCL’s integrated sugar, ethanol, and power businesses.

Every input in DSCL’s system is channelled into value creation. Its zero-waste, fully integrated model ensures cane and grain are maximised across the value chain, delivering both environmental sustainability and rural prosperity. With India accelerating its march towards energy self-reliance and cleaner fuels, DSCL is strategically placed to capture policy tailwinds, rising biofuel demand, and the broader shift to a green economy.

The company now stands at an inflection point—scaling growth, strengthening profitability, and creating long-term shareholder value while advancing the twin national priorities of environmental sustainability and rural industrialization.

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