Experienced promoters coupled with favourable industry outlook
Mr. Chandrashekhar Jagtap, promoter of the company has more than three decades of experience in agro processing and grain procurement whereas Mr. Daulat Desai is a retired IAS officer with ~35 years of government service experience. Going forward, the long-term demand outlook of ethanol and biofuel remains favourable on the back of a significant demand-supply gap, along with the Government’s focus on reducing crude oil import dependency. Further, with the Central Government’s aim to achieve 30 per cent ethanol blending target by 2030, the demand for ethanol is likely to continue. To increase indigenous production of ethanol, the Government is taking multiple interventions for enhancement and augmentation of the ethanol production capacity including interest subvention scheme. Acuité derives comfort from the experience of the promoters and healthy demand for ethanol.

Exposure to project execution risk with project being at nascent stage of completion
MIPL commenced the construction of the project in April 2025 and expects to complete it by April 2026. The commercial operations are anticipated to begin by May 2026. The total project cost is Rs. 63.61 crore, of which ~13 per cent had been incurred as of July 2025. The total project cost will be funded through a combination of promoters’ contribution and a term loan, amounting to Rs. 11.98 crore and Rs. 51.63 crore respectively. As of July 2025, the promoters have contributed 43 per cent of their expected funding, and financial closure has been achieved with 6 per cent of the term loan i.e., Rs. 3.17 crore already drawn down. The promoters are resourceful and will infuse any incremental funding requirement if the situation arises. However, the company is exposed to execution risk, as over 85 per cent of the project cost is yet to be incurred. The ability to execute the project in a timely manner, without cost or time overruns, and to achieve early stabilization, are key credit sensitivities. Furthermore, the proposed unit is located within 150 km of Oil Marketing Companies (OMCs) depots. This proximity, along with government-backed ethanol policies, helps mitigate offtake and demand risks to an extent. Acuité will continue to monitor the progress of the project, the operational track record post-commercialization, and the company’s ability to secure orders from OMCs and the open market, which will remain key monitorable.