Mumbai: Balrampur Chini Mills Ltd has raised Rs 450 crore through a preferential issue of shares to support its expansion plans in the green and bio-plastic business. The company will use the fresh funds mainly for setting up a lactogypsum processing plant and increasing investment in its poly lactic acid (PLA) manufacturing project in Uttar Pradesh.
The Kolkata-based company is one of the major sugar producers in the country. It currently operates ten sugar factories in Uttar Pradesh with a combined sugarcane crushing capacity of 80,000 tonnes per day. It also runs distillery and power co-generation businesses.
Rs 3,100 Crore PLA Project
Balrampur Chini is setting up a PLA manufacturing plant at Kumbhi in Uttar Pradesh. The plant will have an annual production capacity of 80,000 tonnes. PLA is a biodegradable and compostable plastic made from renewable resources.
Executive Director Avantika Saraogi said the company has increased the project cost of the PLA plant by Rs 230 crore. The total investment in the project has now reached nearly Rs 3,100 crore.
She added that the promoters also participated in the share issue and invested around Rs 200 crore in the company.
New Lactogypsum Plant In UP
The company will invest around Rs 160 crore to build a lactogypsum processing plant in Uttar Pradesh. The facility will process lactogypsum generated as a byproduct during PLA production.
According to the company, the plant will have the capacity to produce nearly 76 lakh gypsum boards every year. The remaining Rs 60 crore from the fundraise will be used for general corporate purposes.
Focus On Eco-Friendly Packaging
Saraogi said the company is very positive about the future growth of the bio-plastic business. She highlighted a scientific study by Central Institute of Petrochemicals Engineering & Technology which found that PLA can safely break down in Indian soil conditions without leaving harmful microplastics.
The company is also working on replacing traditional pan masala and gutka packaging with biodegradable PLA-based multilayer films.
