Balrampur Chini's Rs 3,100-cr bio-plastic plant to start commercial operations in Jan-Mar: CMD

New Delhi: Sugar firm Balrampur Chini Mills Ltd expects its Rs 3,100-crore bio-plastic plant in Uttar Pradesh to start commercial production in the next quarter of this fiscal, a top company official said.

Kolkata-headquartered Balrampur Chini Mills, which has 10 sugar factories in Uttar Pradesh, is setting up a Poly Lactic Acid (PLA) plant of 80,000 tonnes per annum capacity at a cost of Rs 3,080 crore.

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"The progress of the 80,000 tonnes per annum PLA plant remains largely on track. We expect the plant to commence commercial operations in Q4FY27. Construction activities are progressing at full pace, and the project continues to advance in line with our execution plans," the company's CMD Vivek Saraogi said in the latest investor presentation.

Till October 15, 2026, the company has already spent around Rs 2,400 crore on this upcoming plant.

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Balarampur Chini is funding this capital expenditure through a mix of equity, debt and internal accruals.

At full capacity, the company is expecting an annual revenue of Rs 2,000 crore, the presentation said.

Balrampur Chini reported a total revenue of around Rs 6,300 crore during the 2025-26 financial year.

The company is also eligible to get incentives under the Bio Plastic Industrial Policy announced by the UP government in October 2024, its Executive Director Avantika Saraogi had said earlier.

Poly lactic Acid (PLA) bioplastics are made from renewable plant resources such as sugarcane, corn starch, tapioca roots and other plant-based feedstocks. The process of extracting PLA involves fermentation and polymerisation, breaking down naturally without leaving toxic residues.

Balrampur Chini Mills is one of the largest sugar companies in India. The company's allied businesses comprise distillery operations and power cogeneration.

The company has 10 sugar factories located in UP with a total sugarcane crushing capacity of 80,000 tonnes per day. It has a distillery and cogeneration operations of 1,050 kilolitre per day and 175.7 MW (saleable), respectively.

As part of the expansion plan, the company recently announced the setting up of a lactogypsum processing plant in UP for Rs 160 crore.

Last week, Balrampur Chini Mills reported a 90 per cent increase in its consolidated net profit to Rs 102.29 crore for the quarter ended September. Its net profit stood at Rs 53.89 crore in the year-ago period.

Total income rose to Rs 1,909.84 crore in the second quarter of the current fiscal from Rs 1,679.49 crore in the corresponding period of the preceding financial year.

During the April-September period of the 2026-27 fiscal, the company's profit increased to Rs 146.43 crore from Rs 105.46 crore in the year-ago period.

Total income grew to Rs 3,561.55 crore in the first half of this fiscal from Rs 3,228.07 crore in the corresponding period of the preceding financial year.