Balrampur Chini to Expand PLA Plant Capacity in UP with ₹2,850 Crore Capex Boost.

Balrampur Chini Mills, one of India’s largest integrated sugar manufacturers, has revised plans for its upcoming polylactic acid (PLA) plant in Uttar Pradesh, increasing its capacity from 75,000 tonnes per annum (TPA) to 80,000 TPA. The expansion raises the project’s total capital expenditure to ₹2,850 crore from the previously approved ₹2,000 crore.

In a stock exchange filing on Friday, the company stated that the net capex for the project would be ₹1,750 crore after accounting for an expected ₹1,100 crore capital subsidy under the Uttar Pradesh government’s bioplastic policy. The funding will be a mix of ₹1,650 crore in debt and ₹1,200 crore from internal accruals.

BCML Chairman and Managing Director Vivek Saraogi confirmed that the project is progressing as scheduled, emphasizing that the UP government’s policy has strengthened the venture’s viability. Executive Director Avantika Saraogi highlighted that the PLA plant will be the world’s first to produce PLA from sugarcane at the same manufacturing site and will operate entirely on renewable energy.

Balrampur Chini also reported a 4% year-on-year increase in standalone net profit to ₹62.73 crore in Q3FY25, driven by improved sugar segment margins. However, revenue declined by 3% to ₹1,192.15 crore due to lower alcohol recovery in the distillery segment. The company noted that an export quota of 1 million tonnes for the ongoing season has helped sustain domestic sugar prices.

HBL