Modi Naturals has decided to establish an ethanol plant in the state of Chhattisgarh. For this project MNL has incorporated 100 percent wholly-owned subsidiary Modi Biotech (MBPL).
MBPL has received in-principle approval for 210 kld distillery for the manufacture of ethanol from the Central government, along with signing MoU with the Chhattisgarh government for the same.
The investment over the next two years is expected to be approximately Rs 250 crore, with Phase-I of 110 kld being completed within a year with an investment of Rs 160 crore.
The project will be funded with a combination of internal accruals and debt for which the company has already received in-principle approval from its banks.
The company has already purchased land for the project and is in the process of ordering plant and machinery, and aims to commission the plant in Q3/FY23.