Mumbai: Sugar company Balrampur Chini Mills is preparing to enter the fast-growing bio-plastic market with a major new project in Uttar Pradesh.
The company is setting up a Poly Lactic Acid (PLA) plant with a production capacity of 80,000 tonnes per year. The total investment in the project is estimated at more than Rs 3,000 crore.
Company Executive Director Avantika Saraogi said the plant is expected to become operational during the third quarter of the current financial year.
Company Targets Rs 2,000 Crore Annual Revenue
Balrampur Chini expects the new plant to generate annual revenue of around Rs 2,000 crore once it starts operating at full capacity.
The company had reported total revenue of around Rs 6,300 crore in FY26. The full financial impact of the bio-plastic business is expected to be visible from FY28 onwards.
Saraogi said construction work at the plant site is progressing quickly.
Demand for Biodegradable Plastic Rising
The company is confident about strong demand for eco-friendly plastic alternatives.
PLA bioplastics are made using renewable plant-based materials such as sugarcane, corn starch and tapioca roots. These products naturally break down without leaving harmful waste behind.
Balrampur Chini believes growing environmental awareness and stricter rules on plastic usage will increase demand for biodegradable products in India.
Company Already Receives First Order
Earlier this year, Balrampur Chini received its first institutional order from the Lucknow Cantonment Board.
The order includes supply of eco-friendly bioplastic products such as compostable garbage bags.
The company is also working on product development and testing by using imported PLA materials before its own plant becomes operational.
Expansion Plans Continue
Balrampur Chini is also expected to receive benefits under the Uttar Pradesh government’s Bio Plastic Industrial Policy 2024.
Apart from the PLA project, the company recently announced plans to build a lactogypsum processing plant in Uttar Pradesh with an investment of Rs 160 crore.
The company currently operates 10 sugar factories in Uttar Pradesh along with distillery and power generation businesses.
