FMCG giant Mishtann Foods has announced earnings for the first quarter of the financial year 2023-24. It has also approved the incorporation of two wholly owned subsidiaries in the field of grain-based ethanol and electric vehicles (EV) components.
The Ahmedabad-based company is primarily in the business of packaged foods. It has recently signed a contract with the Gujarat government to set up a grain-based ethanol manufacturing facility in the state at an outlay of Rs 2,250 crore.
The company is hopeful of starting operations at the new facility in the second quarter of the financial year 2024.
The development is significant as the government has launched the Ethanol Blended Petrol (EBP) programme as part of its carbon reduction commitments. Ethanol can be mixed with petrol to reduce the consumption of fossil fuels. At present, the petrol used in the country has 10 per cent ethanol in it.
Notably, the government has set a target to achieve 20 per cent blending of ethanol with petrol by 2025. Ethanol is most commonly made from maize. It is also made from cellulosic feedstock like crop residues.
The incorporation of subsidiaries is seen as a strategic move, reflecting the forward-looking approach on capitalising on emerging opportunities in sustainable technologies and eco-friendly solutions.
The company in the first quarter of FY24 (April to June) has reported an 85 per cent jump in revenue from operations at Rs 293.94 crore while its profit stood at Rs 70 crore.
“The growth was primarily driven by robust demand and successful geographic expansion of products. The focus on optimizing costs and enhancing operational efficiency has played a vital role,” the company said in a statement.
The homegrown agro-food product has a sizable presence in the rice, wheat and pulses segments.
