Gulshan Polyols Limited is planning to commence its 500 KLPD ethanol facility at Borgaon, Madhya Pradesh from Q4 FY23.

The company had a total sanction of Rs. 170 crore from HSBC for the construction of the facility, of which Rs. 120 crore has been utilized till September 30, 2022.

The plant is expected to produce around 75 million litres of ethanol per year, which will help to meet the growing demand for ethanol in India.

The commencement of the Borgaon ethanol facility is a significant milestone for Gulshan Polyols as it will help to diversify the company's revenue streams and reduce its dependence on its core business of sorbitol manufacturing.

The company is also planning to set up another 250 KLPD ethanol plant in Assam, which is expected to be operational by FY25.

The ethanol market in India is growing rapidly due to the government's focus on promoting ethanol blending with petrol.

The government has set a target of blending 20% ethanol with petrol by 2025, which will create a huge demand for ethanol in the country.