As per the PTI news report, Balrampur Chini Mills Ltd has raised ₹450 crore through a preferential share issue to fund new projects in Uttar Pradesh. The company said the money will be used for a lactogypsum processing plant, higher spending on its poly lactic acid (PLA) unit, and other corporate needs.
Executive Director Avantika Saraogi said promoters invested nearly ₹200 crore in the share issue. The remaining amount was raised from other investors participating in the placement.
The company has revised the cost of its PLA project upward by ₹230 crore. The total investment in the plant now stands at nearly ₹3,100 crore.
The facility is being developed at Kumbhi in Uttar Pradesh and will have a production capacity of 80,000 tonnes per year. Balrampur Chini said the plant is expected to start operations this year.
In February, the company received its first institutional order from the Lucknow Cantonment Board for compostable bioplastic products such as garbage bags.
Balrampur Chini plans to invest around Rs 160 crore in a lactogypsum processing unit in Uttar Pradesh. The proposed facility will have capacity to manufacture around 76 lakh gypsum boards annually.
The company said the plant will process lactogypsum generated from the PLA manufacturing process. Lactogypsum is produced as a byproduct during the production of lactic acid used in bioplastics.
According to the company, a study conducted by the Central Institute of Petrochemicals Engineering and Technology (CIPET) found that PLA can break down in Indian soil conditions without leaving microplastic residue.
Balrampur Chini operates ten sugar factories in Uttar Pradesh with a combined sugarcane crushing capacity of 80,000 tonnes per day. It also has distillery operations with capacity of 1,050 kilo litres per day and co-generation power capacity of 175.7 MW.
The company said both the PLA project and the lactogypsum unit are expected to contribute to future revenue as it expands beyond its sugar business.
As of May 11, 2026, 11:22 am, Balrampur Chini Mills share price was trading at ₹527.15, up 0.84% from the previous closing price.
Balrampur Chini has increased investment in its PLA project while also planning a new lactogypsum processing unit. The projects are part of the company’s expansion into bio-based manufacturing.
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Published on: May 11, 2026, 12:36 PM IST
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