Uttar Pradesh
Balrampur Chini Mills, which is planning to start commercial production of polylactic acid (PLA) by 2026-end, is aiming to garner around 50 per cent of its revenue from non-sugar business in the next three years.
The foundation stone laying ceremony of the company’s upcoming PLA biopolymer manufacturing facility at Uttar Pradesh’s Kumbhi took place on Saturday. The Kolkata-headquartered company, one of the largest integrated sugar manufacturing companies in India, is setting up the plant with a gross capital expenditure of ₹2850 crore.
“With an annual production capacity of 80,000 tonnes per annum, the plant is expected to be operational by October, 2026. It will start commercial production by the end of 2026. This is going to be India’s first PLA plant. So, we will have the first mover advantage in this space. We hope to increase the production capacity going forward based on the demands,” Balrampur Chini Mills Chairman & Managing Director Vivek Saraogi told the media.
“The gross investment of ₹2850 crore in the upcoming plant is the total net asset of the company for all these years,” Saraogi pointed out, adding this would be the company’s largest investment at a time so far.
The company is engaged in the business of ethanol and cogenerated power. It is venturing into PLA to maximise the value stream. This is also a risk diversification measure for the company.
“Currently, around 20 per cent of the company’s revenue is coming from the non-sugar businesses. We are aiming to generate 50 per cent of the revenue from the non-sugar business once the PLA plant is up and running in full capacity. We expect to achieve it in the next three years,” said Avantika Saraogi, Executive Director.
Wide range of applications
PLA finds a wide range of applications, especially as an alternative to the banned Single Use Plastic (SUP) items such as straws, disposable cutlery, food trays, bottles, curd cups, and carry bags, among others.
This project is expected to generate 225 direct jobs in manufacturing, R&D, and operations, while also creating over 2,000 indirect jobs across the value chain, in line with the Uttar Pradesh Bioplastic Industry Policy 2024.
The net capex of the project will be ₹1750 crore post expected capital subsidy of ₹1100 crore as per UP Government scheme.