Indian Alcohol Industry Moves Towards In-House ENA Production for Better Control

New Delhi, May 23 (KNN) India’s alcoholic beverage sector is increasingly shifting towards in-house production of Extra Neutral Alcohol (ENA) to enhance cost efficiency and maintain quality standards. 

This trend is driven by the need for greater control over raw materials and to mitigate supply chain disruptions.

ENA, a high-purity alcohol, is a critical ingredient in producing spirits like vodka, gin, and whisky. Traditionally sourced from third-party suppliers, ENA procurement has posed challenges due to price volatility and inconsistent quality. 

By investing in their own ENA production facilities, companies aim to ensure a steady supply of high-quality alcohol, reduce dependency on external vendors, and achieve better cost management.

Leading players in the industry have already initiated steps towards this transition. For instance, Radico Khaitan, a prominent liquor manufacturer, has expanded its ENA production capacity to meet internal demands. 

Similarly, other firms are exploring the establishment of captive ENA units to align with their long-term strategic goals.

This move not only promises improved product consistency but also aligns with the industry's broader objectives of sustainability and self-reliance. 

By controlling the entire production process, companies can implement eco-friendly practices and reduce their carbon footprint.

However, setting up in-house ENA production requires significant capital investment and adherence to stringent regulatory norms. 

Despite these challenges, the shift is seen as a strategic move to enhance competitiveness and ensure product excellence in the dynamic alcoholic beverage market.

In summary, the Indian alcohol industry’s pivot towards internal ENA production marks a significant step in achieving operational efficiency, quality assurance, and sustainable growth.

(KNN Bureau)