Uttam Distilleries (UDL), a subsidiary of Uttam Sugar Mills, has announced a capacity expansion plan to boost its distillery operations from 40 kilo litre per day (KLPD) to 160 KLPD. 

The expansion aligns with the company's strategic focus on strengthening its ethanol production segment, a key contributor to its revenue and sustainability initiatives. Currently, UDL operates at a high capacity utilisation rate of 95 percent The expansion project is expected to be completed by March 2027 and involves a capital expenditure of Rs 110 crore. The funding will come through a combination of internal accruals, promoter support, and loans. 

Uttam Sugar Mills is engaged in the production of sugar, ethanol, and cogenerated power, and this move further enhances its footprint in the ethanol space, which is gaining importance due to government policies promoting ethanol blending. The increased capacity is anticipated to significantly boost revenue and operational scale upon completion.