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Balrampur Chini Mills Ltd has approved an investment of INR 160 crore to set up a lactogypsum processing plant in Uttar Pradesh as part of its expanding bio-based operations. The company has also increased the cost of its ongoing PLA manufacturing project to around INR 3,080 crore due to rising input costs and design changes. To support these plans, it will raise up to INR 450 crore through preferential share allotment and an additional INR 200 crore via non-convertible debentures. The move reflects its continued focus on diversification into sustainable materials and value-added byproducts.
Balrampur Chini Mills Ltd has announced plans to invest INR 160 crore in setting up a lactogypsum processing plant in Uttar Pradesh, while also approving a fundraise of up to INR 450 crore through preferential share issuance to promoters and investors. Advertisement
The proposed plant will be located at Kumbhi and is expected to have an installed capacity of around 76 lakh gypsum boards annually. The facility will utilise lactogypsum, a byproduct generated from the company’s poly lactic acid (PLA) manufacturing operations, thereby improving resource efficiency and reducing waste.
The company stated in its regulatory filing that a portion of the funds raised through the preferential issue, up to INR 160 crore, will be allocated toward this project.
At the same time, the board has approved a revision in the capital expenditure for its PLA manufacturing plant in Uttar Pradesh. The project cost has been increased by INR 230 crore, taking the total outlay to nearly INR 3,080 crore from the earlier estimate of INR 2,850 crore. The company explained that this revision was due to higher costs of key construction materials, global supply chain disruptions, and additional engineering and design modifications identified during the modelling review stage.
The enhanced capital requirement for the PLA project will be met through a mix of equity raised via preferential allotment, debt, and internal accruals.
As part of its fundraising plan, the company has approved the issuance of up to 93,16,771 equity shares at INR 483 per share, aggregating up to INR 450 crore. These shares will be allotted to promoters, members of the promoter group, and select investors on a preferential basis.
Additionally, the board has cleared a proposal to raise up to INR 200 crore through the issuance of non-convertible debentures on a private placement basis.
Balrampur Chini Mills Ltd, among the largest integrated sugar companies in India, operates ten sugar factories in Uttar Pradesh with a combined crushing capacity of 80,000 tonnes per day. Its operations also include distillery capacity of 1,050 kilolitres per day and co-generation capacity of 175.7 MW.
The company has been gradually diversifying beyond sugar into bio-based materials and is currently setting up a PLA manufacturing facility at Kumbhi with an annual production capacity of 80,000 tonnes. This expansion aligns with its strategy to enter the bioplastics segment and create additional value from its existing operations.
Source PTI
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