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Grainspan invests Rs 520-cr in two ethanol plants in Gujarat

Monday, 16 Jun 2025
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Grainspan Nutrients has invested Rs 520 crore to set up two grain-based ethanol plants in Ahmedabad, Gujarat, supported by the Union Food Ministry’s interest subsidy scheme. These plants, using maize and rice as feedstock, have a combined installed capacity of 350 kilolitres per day and supply ethanol to oil marketing companies under the Ethanol Blending Programme.

The first plant, commissioned in May 2023 at Bhamsara Village, marked Gujarat’s first grain-based ethanol facility with a capacity of 110 KLPD and was set up using a Rs 120 crore loan with central subsidy. Encouraged by its success, Grainspan launched a second plant last month at the same site, with a 240 KLPD capacity, built at a cost of Rs 360 crore, though without subsidy. CEO Manoj Khandelwal highlighted India's vast growth potential in ethanol production, including exports.

Since its 2014 inception as a food ingredients firm, Grainspan has diversified into ethanol, boosting its turnover to Rs 760 crore in the last fiscal. CFO Pankit Shah confirmed that both facilities are now fully operational.

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