Bio-plastics emerge as green alternative revenue play for sugar producers
Ethanol and bio-plastics are emerging as key revenue sources for sugar companies, with PLA-based bio-plastics priced significantly higher than regular plastics. Balrampur Chini Mills has initiated a ₹2,000 crore forward integration project to establish India’s first industrial bio-plastic plant, signaling a major step toward diversification and sustainable business practices in the sugar industry.
As ethanol emerges as a source of alternative revenue for sugar companies due to differential pricing formulas and fixed buying by oil marketing companies, bio-plastics or Polylactic Acid (PLA)-based plastics are also gradually becoming a new avenue for sugar companies looking to diversify their revenue stream. One kilogramme of PLA-based bio-plastics is priced multiple times more than normal plastic.
Not surprisingly, Balrampur Chini Mills, one of India’s largest integrated sugar companies, in February this year announced a Rs 2,000 crore forward integration project which will be the country’s first-ever ‘industrial bio-plastic’ plant.
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Source Link : Business Standard
