The molasses-based ethanol facility has an installed capacity of 60 kilo litres per day. With this, the company's total ethanol production capacity now stands at 150 KL/D. The company would scale up this to 180 KL/D with the opening of Brijnathpur facility in March 2007.

"Simbhaoli has become one of the largest producers of ethanol today. We envisage higher revenues from our ethanol business as Simbhaoli is poised to benefit from the government's ethanol blended petrol programme and also because of its proximity to key markets of Delhi, UP and Haryana," G S Mann, chairman and managing director of the company, said.

The company already supplies 11 million litres of ethanol to oil majors such as Indian Oil and BPCL in Uttar Pradesh and Haryana. The diversification is part of the company's Rs404 crore growth plan to be completed by March 2007.