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JDW Sugar Mills ethanol project set to enhance Pakistan’s agri-based exports

August 01, 2025

Shams ul Nisa

JDW Sugar Mills Limited has launched a new ethanol plant and a solar tube well financing programme to support farmers, boost rural livelihoods, and expand its presence in global markets, reports WealthPK.

The ethanol plant in Sadiqabad, Rahim Yar Khan, is nearing completion with commercial production expected soon. The facility will convert molasses, a sugar byproduct, into high-quality ethanol for export. This project enables JDW to tap into international markets, diversify income, and reduce reliance on domestic sugar prices as ethanol sees strong demand in global biofuel, pharmaceutical, and spirits industries.

Moreover, the ethanol project is set to enhance Pakistan’s agri-based exports by shifting focus from raw commodity sales to high-value products. By utilising surplus molasses, JDW will increase the efficiency of its sugarcane output, strengthen the supply chain and generate employment. The initiative is also expected to bring in foreign exchange, boosting the country’s balance of payments and supporting broader economic stability.

Additionally, JDW introduced a solar tube well financing programme in 2025 to support farmers and promote sustainable agriculture. The initiative offers loans for solar-powered irrigation, cutting costs and improving sugarcane farming profitability with a short payback period. It also contributes to environmental sustainability by lowering carbon emissions and enhancing farming resilience.

Pakistan’s sugar industry faced major challenges in financial year 2024-25 due to excess stock, export delays, and price volatility, leading to reduced profit margins. However, JDW Sugar Mills responded by leveraging exports and diversifying operations. Alongside Pakistan Sugar Mills Association, JDW Mills is advocating full deregulation and market-based pricing to boost competitiveness. Therefore, with sugar production below targets, policy reforms are seen as vital for industry stability.

JDW has shown strong financial resilience, with its consolidated balance sheet rising from Rs70 billion to Rs114 billion and reserves reaching 47 times the paid-up capital. For the six months ending March 2025, the company posted Rs81.3 billion in revenue, Rs2.69 billion in profit-after-tax, and earnings per share of Rs46.40. Its performance reflects effective capital management, timely debt servicing, and strategic investments.

JDW is turning its vision of creating future opportunities into a tangible strategy for building a modern, sustainable, and globally competitive agriculture sector with a focus on innovation and farmer support. As the ethanol plant nears operation and solar tube well installations expand across farming communities, JDW is leading the transformation from traditional sugar production to a diversified, high-impact enterprise that sets a benchmark for the broader agri-processing industry.

Credit: INP-WealthPk