Confidence Petroleum acquires 80% equity stake in Garg Distilleries

MUMBAI: Confidence Petroleum on Monday said it has acquired 80% equity stake in Garg Distilleries, an unlisted, closely-held ethanol manufacturing unit, for an undisclosed amount.

Confidence also said it has acquired Laxmi Nirmal Petrochemicals situated near Pune, and which is also engaged in the manufacturing of ethanol, with an installed capacity of 21,600 kilo litres.

Shares of Confidence were sharply up 7.4% at Rs 6 on the BSE.

Both Garg Distelleries and Laxmi Nirmal use processes based on the molecular sieve dehydration system.

Ethanol is blended with gasoline in varying quantities up to pure and can be used in most spark-ignited gasoline style engines and can run on blends of up to 10% ethanol. The process helps in reducing pollution levels.