Balrampur Chini raises Rs 450 cr equity fund for poly lactic acid, lactogypsum plants in UP

We have raised Rs 450 crore through issue of preferential shares to support the companys expansion and growth plans, Balrampur Chini Executive Director Avantika Saraogi told PTI. As part of the expansion plan, Saraogi said the company will invest Rs 160 crore to set up a lactogypsum processing plant in UP.

Balrampur Chini Mills Ltd has raised Rs 450 crore equity fund mainly to set up a lactogypsum processing plant and also meet enhanced capex for poly lactic acid (PLA) facility in Uttar Pradesh. The company has ten sugar factories in UP having an aggregate sugarcane crushing capacity of 80,000 tonnes per day. It also has distillery and co-generation operations of 1,050 kilo litre per day and 175.7 MW, respectively. Kolkata-headquartered Balrampur Chini has diversified into bio-plastic business and is setting up a PLA manufacturing plant at Kumbhi in UP with a total annual capacity of 80,000 tonne. ''We have raised Rs 450 crore through issue of preferential shares to support the company's expansion and growth plans,'' Balrampur Chini Executive Director Avantika Saraogi told PTI. She said the promoters also participated in the preferential issue of shares and have invested nearly Rs 200 crore. As part of the expansion plan, Saraogi said the company will invest Rs 160 crore to set up a lactogypsum processing plant in UP. The company has also revised upwards its capital expenditure on new PLA manufacturing plant in UP by Rs 230 crore to nearly Rs 3,100 crore. The remaining Rs 60 crore would be used for general corporate purposes, she said. Saraogi said the PLA plant is likely to be operational this year. In February this year, the company bagged first institutional order from Lucknow Cantonment Board to supply green bioplastic products, including compostable garbage bags. Saraogi said the company is very bullish on the business potential of this new vertical. She highlighted that a new scientific study conducted by an academic institution CIPET has 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. Traditionally, discussions were based on perceptions. However, today, there is scientific proof that materials like PLA can be recycled back into nature without creating any long-term environmental damage,'' she said. The future of plastics should focus on minimising plastic waste as well as developing materials that safely degrade in nature, Saraogi emphasised. The company's executive director said that it is working with stakeholders towards replacing conventional pan masala / gutka packaging with PLA-based multilayer film, a viable and scalable alternative that is fully biodegradable. Elaborating on the ongoing expansion, Saraogi said the proposed lactogypsum processing plant will have an installed capacity of about 76 lakh gypsum boards per annum. This upcoming plant intends to process lactogypsum generated as a byproduct from its PLA manufacturing operations. Both these upcoming PLA and lactogypsum plants would contribute significant revenue to the company, she added.