Balrampur Chini Mills to venture into Poly Lactic Acid manufacturing; shares gain

Balrampur Chini Mills share price gained in early trade on February 20 after the company announced its decision to venture into the manufacturing of Polylactic Acid (PLA) with a new fully integrated facility.

At 09:21 hrs, Balrampur Chini Mills was quoting at Rs 390.05, up Rs 6.40, or 1.67 percent, on the BSE.

The company announced forward integration, as well as business diversification, with its upcoming PLA (Polylactic Acid) manufacturing venture.

The said project will be developed with an estimated investment of Rs 2,000 crore in phases over a period of around 2.5 years and expected to be completed within a period of 30 months, the company said.

The new venture will mark the establishment of the first-ever industrial bioplastic plant in India and the state-of-art PLA factory will command a whopping capacity at “global” scale of 75’000 t/a.

The new plant will be located on a “greenfield site”, beside one of the existing sugar plants, wherein a significant proportion of the local infrastructure already exists.

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To lead the new business, the company has appointed Stefan Barot as the President (Chemicals) in the category of Senior Management Personnel of the company.

"With this project, Balrampur Chini aims to pioneer an industry-first approach in the country reducing carbon emissions by minimizing reliance on fossil fuels in plastic production, showcasing innovation and environmental consciousness," said Vivek Saraogi, CMD, Balrampur Chini Mills.

The company's December quarter net profit jumped 36 percent at Rs 60.31 crore, YoY.