Balrampur Chini Secures Rs 450 Crore Equity Fund for Poly Lactic Acid and Lactogypsum Projects in Uttar Pradesh

Balrampur Chini Raises Rs 450 Crore Equity Fund for Expansion

Balrampur Chini Mills Ltd, a leading sugar manufacturing company with ten factories in Uttar Pradesh, has raised Rs 450 crore in equity funds to support its expansion plans, primarily to set up a lactogypsum processing plant and enhance capital expenditure for its poly lactic acid (PLA) facility in the state.

The company, headquartered in Kolkata, has a diversified business portfolio that includes distillery and co-generation operations, with a capacity of 1,050 kilo litre per day and 175.7 MW, respectively. Balrampur Chini has also ventured into the bio-plastic business, with a PLA manufacturing plant under construction in Kumbhi, Uttar Pradesh, which will have a total annual capacity of 80,000 tonnes.

As part of its expansion plan, the company will invest Rs 160 crore to set up a lactogypsum processing plant in Uttar Pradesh. The plant will have an installed capacity of about 76 lakh gypsum boards per annum and will process lactogypsum generated as a byproduct from its PLA manufacturing operations. The remaining Rs 60 crore from the equity fund will be used for general corporate purposes.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The company has also revised its capital expenditure for the new PLA manufacturing plant in Uttar Pradesh upwards by Rs 230 crore to nearly Rs 3,100 crore. The PLA plant is expected to be operational this year, with the company having already bagged its first institutional order from the Lucknow Cantonment Board to supply green bioplastic products, including compostable garbage bags.

According to Balrampur Chini's Executive Director, Avantika Saraogi, the company is bullish on the business potential of its new vertical. She highlighted a recent scientific study conducted by CIPET, an academic institution, which revealed that PLA, a compostable polymer, can degrade into safe natural substances in Indian soil conditions without leaving harmful microplastics behind.

This study represents a significant milestone for the Indian bioplastics sector, providing scientific evidence to support the development of biodegradable materials. Saraogi emphasized that the future of plastics should focus on minimizing plastic waste and developing materials that safely degrade in nature. The company is working with stakeholders to replace conventional pan masala/gutka packaging with PLA-based multilayer film, a viable and scalable alternative that is fully biodegradable.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline