Balrampur Chini to Launch PLA Production by 2026
Balrampur Chini Mills Limited, a leading sugar manufacturing company in India, made headlines recently with the announcement of their upcoming polylactic acid (PLA) biopolymer manufacturing facility in Uttar Pradesh’s Kumbhi. The foundation stone laying ceremony for this groundbreaking project took place over the weekend, with Uttar Pradesh Chief Minister Yogi Adityanath gracing the event. This move marks a significant shift in the company’s focus, as they aim to kickstart commercial production of PLA by the end of 2026 and diversify their revenue streams beyond the sugar business.
Setting the Stage for Innovation
With a hefty gross capital expenditure of ₹2850 crore, Balrampur Chini Mills is gearing up to establish a state-of-the-art plant with an annual production capacity of 80,000 tonnes. Chairman & Managing Director Vivek Saraogi expressed his enthusiasm for this venture, highlighting the strategic advantage of being India’s first PLA plant. “We will have the first mover advantage in this space. We hope to increase the production capacity going forward based on the demands,” Saraogi shared during a media interaction. This ambitious investment marks a significant milestone for the company, signaling their commitment to embracing new technologies and expanding their business horizons.
Diversification for Growth
In a bold move towards diversification, Balrampur Chini Mills is venturing into PLA production to unlock new opportunities and maximize their value stream. Executive Director Avantika Saraogi revealed the company’s goal of increasing non-sugar revenue from the current 20% to an impressive 50% once the PLA plant is fully operational. This strategic shift reflects their proactive approach to risk management and future-proofing their business against market fluctuations. The company’s foray into PLA not only promises economic growth but also aligns with the broader sustainability goals of reducing single-use plastics.
A Sustainable Solution
Polylactic acid (PLA) is a versatile biopolymer that serves as a sustainable alternative to traditional single-use plastic items like straws, cutlery, food trays, bottles, and carry bags. By embracing PLA production, Balrampur Chini Mills is not only tapping into a lucrative market but also contributing to environmental conservation efforts. The PLA plant is projected to generate 225 direct jobs in manufacturing, research and development, and operations, while creating over 2,000 indirect jobs throughout the value chain. This initiative aligns with the Uttar Pradesh Bioplastic Industry Policy 2024, underscoring the company’s commitment to supporting local economies and fostering sustainable growth.
A Bright Future Ahead
As Balrampur Chini Mills embarks on this transformative journey towards PLA production, the company is poised to revolutionize the biopolymer industry in India. With a visionary leadership team, substantial investment, and a clear focus on innovation and sustainability, they are well-positioned to achieve their ambitious goals. The net capex of the project, estimated at ₹1750 crore after anticipated capital subsidies, underscores the company’s prudent financial planning and strategic foresight. Balrampur Chini Mills’ bold step into the realm of PLA production not only marks a significant milestone in their corporate history but also heralds a new era of growth, diversification, and environmental stewardship.