Mumbai-based Godavari Biorefineries has announced a significant investment to enhance its ethanol production capabilities.

The company revealed on Monday that it will invest Rs 130 crore in a new corn/grain-based distillery to strengthen its ethanol production. This strategic move aims to increase flexibility through dual-feedstock capability and meet the growing demand under India's ethanol blending programme.

The new 200 KLPD facility is scheduled to be commissioned by March 2026 and will be financed through internal accruals and debt. Samir Somaiya, Chairman and Managing Director of Godavari Biorefineries, highlighted that this new capacity will complement the existing sugarcane-based operations, ensuring more resilient ethanol production even during climate-related disruptions.

The investment is expected to offer operational fungibility, allowing the use of alternative feedstocks like maize to mitigate disruptions caused by factors such as poor monsoons and policy changes. The company's stock closed 0.63% higher at Rs 358.10 per share on the BSE.