Mishtann Foods announces to set up grain-based ethanol manufacturing facility

Mishtann Foods Limited has announced plans to set up a 1,000 Kilolitres Per Day (KLPD) grain-based ethanol manufacturing facility in Gujarat. The company's recent investment, launches of new products and order book are expected to improve the financials further in coming quarters, as per a company statement.

"Mishtann Foods Ltd., engaged in the production and marketing of a large variety of rice, pulses and other edible products and is looking to set up its manufacturing facility in Dalpur village of Sabarkantha district of Gujarat. Mishtann Foods has executed a Memorandum of Understanding (MoU) with the Government of Gujarat for setting up India's biggest Grain Based Ethanol project of 1000 KLPD in Gujarat," the statement said.

The proposed project is likely to incur a cost of Rs 2,250 cr to the company, with an estimated annual revenue projection of Rs 3,500 crore for the company.

Mishtann is aiming to commence the operations of the plant from the second quarter of 2024.

Commenting on the development, Ravi Singh, Vice President & Head of Research, Share India Securities said, ‘As inflation still remains a matter of uncertainty, it’s advisable to invest in inflation-hedged assets like commodities and cyclical stocks of FMCG as they generally gives good returns when prices are higher. Mishtann Foods diversified business model in FMCG sector is well supporting it’s revenue growth and profitability. The financials are expected to improve in upcoming quarters on account of new investments and robust order book. The company’s stock holding strong on daily chart and the levels according to momentum indicators indicates around 11.5 - 12 levels in near term.’