Kotyark Industries Limited
Kotyark Industries Limited, listed on the NSE SME platform, is an Indian company specializing in the production and distribution of biofuels and renewable energy products. Their primary business is manufacturing biodiesel, which is derived from renewable sources and serves as an eco-friendly alternative to traditional fossil fuels. The company contributes to the green energy sector by focusing on sustainable fuel solutions that help reduce carbon emissions and dependency on petroleum-based fuels.
Key Aspects of Kotyark Industries' Business:
Biofuel Production: Kotyark Industries primarily produces biodiesel, which is manufactured from non-edible oils, agricultural waste, and other organic materials. Biodiesel is used as an alternative fuel in various sectors, including transportation, agriculture, and industrial applications.
Renewable Energy Focus: By focusing on biodiesel, Kotyark is tapping into the renewable energy sector, contributing to India's energy diversification and sustainability goals.
Environmental Contribution: Biodiesel production and consumption help reduce greenhouse gas emissions, aligning Kotyark with global sustainability goals and India's initiative toward greener energy solutions.
Industrial and Infrastructure Supply: The company supplies biodiesel to a range of industries, including construction, mining, logistics, and heavy transportation, providing an eco-friendly alternative for sectors with high energy demands.
Government Alignment: Kotyark Industries benefits from policies promoting renewable energy and biofuels in India. These policies aim to reduce the nation's carbon footprint and dependence on imported fossil fuels, giving companies like Kotyark an edge in terms of subsidies and demand.
Listed on the NSE SME exchange, Kotyark Industries targets a specific investor base focused on small and medium-sized enterprises, which enables them to gain visibility and potentially access capital for further expansion in the renewable energy sector. This position aligns well with the broader global and national push for green, sustainable energy solutions.
Kotyark Industries has a production capacity of 182,500 kiloliters (KL) annually for biodiesel. However, it has operated below full utilization, with a reported utilization rate around 8% in FY22. This utilization rate improved to approximately 30% by the first half of FY24, driven by increased orders from oil marketing companies (OMCs) and strategic developments in the sector
The company's recent merger with Yamuna Bio Energy aims to optimize production and potentially increase overall capacity, reflecting anticipated growth in demand. With India's government targeting 5% biodiesel blending by 2030, Kotyark has substantial opportunities to expand capacity utilization in line with national energy goals
Expansion plan
Kotyark Industries has been actively expanding its production capabilities to meet growing biodiesel demand. Recently, it raised its capacity to 1,500 kiloliters per day, up from a prior 500 KL/day, including crude glycerine production expanding to 210 KL/day. This enhancement was driven by the company’s strategic goal to strengthen its presence in the biofuel market and respond to increased demand from oil marketing companies (OMCs).
Additionally, Kotyark recently completed an amalgamation with Yamuna Bio Energy, which consolidated operations in Rajasthan and Gujarat and further boosted the combined production capability. With these expansions, Kotyark Industries is well-positioned to meet India’s biodiesel blending goals and expects substantial gains from increased operational capacity and reduced cost structures.
Looking ahead, Kotyark has also secured a recent capital raise of ₹55.27 crores, which will further support its expansion initiatives, pending shareholder approval. These efforts reflect Kotyark’s long-term commitment to environmental sustainability and economic growth in the renewable energy sector.