Davangere Sugar Charts Ambitious Expansion Amid India’s Biofuel Push

Mumbai (Maharashtra) [India], September 1: Davangere Sugar Company Limited (DSCL) (NSE: DAVANGERE, BSE: 543267) is gearing up for a transformative phase of growth, leveraging a favourable government policy, rising ethanol demand, and deep-rooted farmer partnerships as India accelerates its transition toward cleaner fuels and rural industrialisation.

DSCL – a five-decade old company based in Karnataka, has emerged as a fully integrated played in sugar, ethanol and renewable energy. It is uniquely placed to take advantage of India’s evolving bioeconomy through well charted strategy that involves capacity expansion, diversified feedstock procurement, and robust farmer engagement.

Strategic Capacity Expansion in Ethanol and CO₂ Recovery

DSCL’s current growth strategy is anchored in the rapid expansion of its ethanol production capacity, supported by India’s Ethanol Blending Program (EBP) and the government’s strong policy thrust towards cleaner fuels. With the EBP gaining momentum, DSCL is set to increase its current 65 KLPD (kilo litres per day) ethanol capacity to 85 KLPD within FY26, with a further expansion plan to reach 110 KLPD, coupled with a 35 TPD CO₂ recovery plant in the pipeline.

These investments align DSCL with the government’s ethanolpolicy and roadmap, provide additional revenue streams to the company. 

Ensuring consistent feedstock supply and year-round production, the company plans to diversify procurement by tapping into broken rice and maize, allowing it to not only meet its own raw materialrequirements. But also focus on grain trading vertical—a strategic move aimed at unlocking fresh revenue streams.

Empowering Farmers, Boosting Cane Acreage

In a bid to strengthen its supply chain and deepen rural engagement, DSCL is also launching a major push in sugarcane cultivation. The company aims to expand cultivation by 15,000 acres this year alone.

Key to this strategy is a package of farmer-centric initiatives:

• Mechanised harvesting systems to reduce labour costs and improve farm productivity.
• Organised cane transport solutions to streamline logistics and ensure timely supply.
• Subsidies and performance-linked incentives to reward farmers and boost incomes.

These efforts are projected to help DSCL surpass 5 lakh metric tonnes of sugarcane crushing consistently in the coming years, creating a multiplier effect across its sugar, ethanol, and power businesses.

Mr. Ganesh Shivashankarappa Shamanur, Chairman & Managing Director of Davangere Sugar Company Limited expressed, “Davangere Sugar is at a turning point in its growth journey. With expansions in ethanol, aggressive grain procurement, increased cane cultivation, and farmer-friendly initiatives, we are creating a robust growth model that strengthens revenues, profitability, and long-term shareholder value.

The company’s zero-waste, fully integrated operations ensure every input—from sugarcane to grain—is utilised optimally, contributing to both environmental sustainability and rural prosperity.”

Well-Positioned in a Transforming Energy Landscape

As India intensifies its push toward energy self-reliance and green fuel adoption, DSCL’s diversification into ethanol and renewables aligns with national priorities. With favourable policy tailwinds and rising demand, especially in the biofuel segment, DSCL is strategically placed to capitalise on new market opportunities while reinforcing its commitment to rural development and environmental responsibility.

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