India Ethanol market stood at USD2805.38 million in 2021 and is expected to grow
at a CAGR of 12.68% during the forecast period. This can be attributed to
the factors like administrative support, government policies like new ethanol
blending program (EBP) which makes compulsory for oil manufacturing companies
(OMCs) to blend 10% ethanol in petrol by end of 2022 and 20% till 2025. Moreover, blending with gasoline over
conventional unblended petrol also drives the ethanol market. Apart from that ethanol’s demand is increasing
extensively as a solvent for the manufacturing of varnishes and perfumes, in
the preparation of essences and flavorings, and as surface disinfectant, the
demand for which was at peak during Covid time as it was used in hand
sanitizers.
Favorable Policies by
Government
Government has set target for blending
10% ethanol till 2022 and 20% of it till 2025, in gasoline which will save at
least. New policies like National biofuels policy, 2021 and Ethanol Blended Petrol (EBP) program
are seen to be the principal driver of the demand expansion of ethanol in
India. The EBP program aims is to address environmental concerns, reduce oil
import bill and provide remunerative income to farmers. At present, ethanol blending
level in petrol is around 8.5%. Under the EBP program the government of India
has reintroduced the administered price mechanism for ethanol procurement. This
in turn allows ethanol production from multiple feedstocks such as heavy
molasses, sugarcane juice, sugar, sugar syrup, damaged food grains, maize and
surplus rice stocks with Food Corporation of India (FCI). Increasing use of
biodegradable plastics, with growing awareness among public towards ill-effects
of conventional plastic waste is the major growth drivers of the Biodegradable
plastics industry. The rising trend of environmentally
friendly materials for packaging has also influenced the market growth of biodegradable plastics.
These factors also contribute one step towards Sustainable future with reduced
environmental impact.
Surplus
Raw Material Availability Fuels the Market Growth
To increase the production of fuel grade ethanol
and to achieve blending targets, the Government of India has allowed the use of
maize and rice for production of ethanol. This in turn will not only facilitate
the diversion of excess sugar to ethanol manufacturing but also will help the
farmers in diversifying their crops to cultivate crops that require less water
intake such as maize/corn. This would enhance production of ethanol from
various feed stocks thereby, help in achieving blending targets of ethanol with
petrol. This in turn would reduce dependency on crude oil.
Low-Cost Alternative Fuel and
Availability of Huge Arable Land
Ethanol is an eco-friendly
source of fuel which not only produces lesser pollution but also is quite
affordable and easily available as compared to unblended gasoline. As it is mostly a product of molasses, grains and
processed corn, ethanol also reduces the pressure to drill in environmentally
sensitive places. Ethanol production also supports farmers and creates domestic
jobs and because ethanol is produced from domestically grown crops, it reduces
India’s dependence on foreign oil.
Assistance from Automobile Sector
The Automobile Industry has agreed
with government to produce Flex Fuel Vehicles which will be capable of running
on E85 that is up to 85% Ethanol blended gasoline, gradually decreasing import of
crude oil and contributing to nation’s energy Independence. Apart from the government
has announced that all new vehicles will be E20 compliant from 2023, which will
further contribute to the market growth.
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Market Segmentation
The India ethanol market is
segmented based on type, raw material, purity,
application and regional distribution. Based on type, the market is further
fragmented into Bioethanol and Synthetic Ethanol, based on raw material, the
market is segmented into Sugar & Molasses Based, Grain Based, Algal Biomass,
Lignocellulosic Biomass and based on purity, it is fragmented into Denatured and
Undenatured, and on basis of application, into Fuel & Fuel
Additives, Industrial Solvents, Beverages, Disinfectant, Personal Care, Others. Based on region,
the West region dominated the market in FY2021 with an overall share of 33.53%
on account of well-established refineries of oil marketing companies which
holds major portion in demand for ethanol.
Company Profiles
India Glycols Limited., Balrampur
Chini Mills Limited, Shri Renuka Sugars Limited, Triveni Engineering and
Industries Limited, Godavari Biorefineries Limited, Dalmia Bharat Sugar and
Industries Limited, Bajaj Hindustan Sugars Limited., Simbhaoli Sugars Limited.,
East India Distilleries Parry Limited, Mawana Sugars Limited are among the
major market players in the India platform that lead the market growth of the
India Ethanol market.
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Attribute
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Details
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Market size value in 2021
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USD 2805.38 Million
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|
Revenue Forecast in 2027
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USD 5638.56
Million
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Growth Rate
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12.68%
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Base Year
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2021
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Historical Years
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2017 – 2020
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Estimated Year
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2022E
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Forecast Period
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2023F– 2027F
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Quantitative Units
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Revenue in USD Million and CAGR for 2017-2021 and 2022-2027
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Report Coverage
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Revenue forecast, company share, competitive landscape, growth
factors, and trends
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|
Segments Covered
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·
Type
·
Raw Material
·
Purity
·
Application
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Regional Scope
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West, South, North and East
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Key Companies Profiled
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India
Glycols Limited., Balrampur Chini Mills Limited, Shri Renuka Sugars Limited, Triveni
Engineering and Industries Limited, Godavari Biorefineries Limited, Dalmia
Bharat Sugar and Industries Limited, Bajaj Hindustan Sugars Limited., Simbhaoli
Sugars Limited., East India Distilleries Parry Limited, Mawana Sugars Limited
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Customization Scope
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10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
|
|
Pricing and Purchase Options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
|
Delivery Format
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PDF and Excel through Email (We can also provide the editable
version of the report in PPT/pdf format on special request)
|
Report Scope:
In this report, India ethanol market has been segmented into following
categories, in addition to the industry trends which have also been detailed
below:
- India
Ethanol Market, By Type:
o Sugar
& Molasses based
o Grain
based
o Lignocellulosic
Biomass
o Algal
Biomass
- India Ethanol Market, By Purity:
o Denatured
o Undenatured
- India Ethanol
Market, By Application:
o Fuel
& Fuel Additives
o Industrial
Solvents
o Disinfectant
o Personal
Care
o Beverages
o Others
- India Ethanol
Market, By Region:
o
West
o
South
o
North
o
East
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in India Ethanol market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
In case you don’t find what you are looking for, please get in touch with our custom research team at sales@techsciresearch.com