Balrampur Chini Mills raises Rs 450 crore to expand bioplastics and new projects in Uttar Pradesh
Balrampur Chini Mills Limited raised ₹450 crore to expand its PLA bioplastics and lactogypsum projects in Uttar Pradesh. The company increased PLA investment to ₹3,100 crore, plans an 80,000-tonne annual PLA plant, and expects both projects to boost future revenues significantly.
New Delhi: Kolkata-based Balrampur Chini Mills Ltd has raised Rs 450 crore through an equity fund to support its expansion plans in Uttar Pradesh. The funds will be used mainly to set up a new lactogypsum processing plant and to meet increased investment needs for its poly lactic acid (PLA) project.
The company currently operates ten sugar mills in Uttar Pradesh with a combined crushing capacity of 80,000 tonnes of sugarcane per day. It also runs distillery operations with a capacity of 1,050 kilolitres per day and co-generation units producing 175.7 MW of power, PTI reported.
As part of its diversification strategy, the company is entering the bioplastics sector. It is setting up a PLA manufacturing plant at Kumbhi in Uttar Pradesh, which will have an annual production capacity of 80,000 tonnes.
Executive Director Avantika Saraogi said the Rs 450 crore was raised through the issue of preferential shares to support growth and expansion plans. She added that promoters also took part in the share issue, investing nearly Rs 200 crore, PTI stated.
Out of the total funds raised, Rs 160 crore will be used to build a lactogypsum processing plant in the state. The company has also increased its planned investment in the PLA plant by Rs 230 crore, taking the total cost to nearly Rs 3,100 crore. The remaining Rs 60 crore will be used for general corporate needs.
Saraogi said the PLA plant is expected to become operational later this year. Earlier in February, the company received its first institutional order from the Lucknow Cantonment Board to supply compostable bioplastic products such as garbage bags.
She expressed confidence in the growth potential of the bioplastics segment. Referring to a recent study by CIPET, she said it confirmed that PLA, a compostable material, can break down into safe natural substances in Indian soil without leaving harmful microplastics.
According to Saraogi, the findings provide scientific support for the use of such materials, moving beyond earlier assumptions. She stressed that the future of plastics lies in reducing waste and developing materials that can safely decompose in nature.
The company is also working with industry stakeholders to replace conventional packaging used in products like pan masala and gutka with PLA-based biodegradable alternatives.
Meanwhile, the proposed lactogypsum plant will have the capacity to produce about 76 lakh gypsum boards annually. It will use lactogypsum generated as a byproduct from the PLA manufacturing process.
Both the PLA and lactogypsum projects are expected to add significantly to the company’s revenue in the coming years, Saraogi said.
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Source : ChiniMandi
