Sugar firm Balrampur Chini Mills Ltd. expects about Rs 2,000 crore annual revenue from its new bio-plastic plant in Uttar Pradesh, scheduled to be commissioned during the December quarter, a senior company official said.
Balrampur Chini Mills, which has 10 sugar factories in Uttar Pradesh, is setting up a Poly Lactic Acid plant of 80,000 tonnes per annum capacity at a cost of more than Rs 3,000 crore.
In an interview with PTI, Balrampur Chini Executive Director Avantika Saraogi said, "This new plant will be operational in the third quarter of this fiscal." Asked about the revenue potential from the plant, she said, "We are expecting a revenue of about Rs 2,000 crore at full capacity.
Balrampur Chini posted a total revenue of around Rs 6,300 crore during the last fiscal. The full-year impact of this new PLA plant would be reflected in the 2027-28 fiscal.
Saraogi said the construction activities on the site are undergoing at full speed.
Meanwhile, the company is doing analysis and product development through imported PLA.
Saraogi expressed confidence that the plant would run at full capacity after commissioning, considering a huge demand for biodegradable plastic.
In February this year, the company bagged its first institutional order from Lucknow Cantonment Board to supply green bioplastic products, including compostable garbage bags.
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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 is also eligible to get incentives under the Bio Plastic Industrial Policy 2024 announced by the UP government in October, 2024, Saraogi said.
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 1050 kilolitre per day and 175.7 MW (saleable) respectively.
As part of the expansion plan, the company recently announced setting up of a lactogypsum processing plant in UP at a cost of Rs 160 crore.
Last week, the company reported a decline in its consolidated net profit to Rs 378.46 crore in the 2025-26 fiscal from Rs 436.92 crore in the preceding year. But the total income rose to Rs 6,307.95 crore last fiscal from Rs 5,504.19 crore in 2024-25.
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