BCL Industries, a standout performer in the Indian stock market, has displayed remarkable growth in recent years, particularly in the post-Covid recovery phase. The stock’s impressive journey has seen it surge from approximately ₹50 per share to ₹500 per share within the last three years, delivering an astounding 900% return to its long-term investors. And it appears that the stock still has room to climb.
Today, BCL Industries’ share price started with a positive gap and reached an intraday high of ₹502 per share on the National Stock Exchange (NSE), coming within 6% of its all-time high of ₹536.35 per share.
What’s driving this growth? BCL Industries has recently unveiled ambitious expansion plans, signaling its commitment to meeting the growing demand in the distillery industry. According to the latest filing with Indian stock market authorities, the company aims to boost its overall production capacity to 850 kiloliters per day (KLPD) over the next two years, in response to increasing demand.
Expanding in West Bengal, BCL Industries has strategically installed a cutting-edge 200 KLPD Extra Neutral Alcohol (ENA) plant in Kharagpur under its subsidiary, M/s. Svaksha Distillery Limited. Having successfully completed phase 1 operations, the company is now progressing to phase 2, which will add an extra 100 KLPD capacity. All necessary approvals for expansion have been secured, and major machinery orders have been placed. The expected commissioning of this expansion is slated for December 2023, with a project cost of approximately ₹90 crore.
In Bathinda, the company has already commissioned a 200 KLPD ethanol-dedicated plant in July, with a total project cost of around INR 205 Crores. This move is expected to generate revenues of approximately INR 550 Crores annually. To hedge against rising fuel costs, BCL Industries has also commissioned a boiler fired on paddy straw alongside its ethanol plant. This innovative approach not only diversifies its fuel sources but also aligns with state government schemes, qualifying for SGST refunds. The boiler’s capital expenditure was approximately ₹40 Crores.
BCL Industries boasts fully integrated, multi-feedstock, and modern plants in Punjab and West Bengal, currently holding an installed capacity of 600 KLPD, with plans to expand to 850 KLPD. Notably, the distillery segment features state-of-the-art machinery and infrastructure, ensuring a sustainable, zero-discharge, and energy-efficient business model. This sets a precedent for efficient water and effluent management processes in the industry.
The company’s flexibility in using multiple raw materials such as rice, maize, and millets, coupled with its swift switch between ENA and ethanol production, distinguishes it from many distillers in the country. Moreover, BCL Industries possesses ample land, steam, and power resources for future expansion, a strategic advantage in light of the Indian government’s push for higher ethanol blending in petrol.
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