Balrampur Chini announces Rs 2000 cr capex in India's first industrial bioplastic

Balrampur Chini Mills Capex: Kolkata-based Balrampur Chini Mills Limited (BCML) has unveiled an ambitious Rs 2,000 crore forward integration project, marking India's first-ever "industrial bioplastic" plant. The move aligns with India's sustainability objectives in combating climate change.

The PLA (Polylactic Acid) manufacturing venture, part of BCML's diversification strategy, is envisioned to achieve net-zero emissions by 2070. Avantika Saraogi, Executive Director of Balrampur Chini, revealed that the estimated investment of Rs 2,000 crore will be phased over the next 30 months.

The PLA factory, slated for completion within the specified timeframe, will boast an impressive global-scale capacity of 75,000 tonnes per annum. While the exact location is yet to be finalized, it is expected to be situated on a "greenfield site" adjacent to an existing sugar plant, among the ten owned by the company in Uttar Pradesh.

The proximity to existing sugar mill locations is seen as advantageous, leveraging local infrastructure for efficient utilization of sugar as a raw material in PLA production. Polylactic Acid is recognized as a sustainable alternative to traditional plastics, aligning with BCML's commitment to eco-friendly practices and sustainability.

Vivek Saraogi, CMD of Balrampur Chini, emphasized the project's goal to lead in carbon emissions reduction and promote innovation in plastic production. The venture is also facilitated by BCML's minority stake acquisition in Konkan Speciality Polyproducts Private Limited (Konspec), a significant player in specialty polymers, biopolymers, intermediaries, and chemicals.

This foray into bioplastics represents a shift from linear consumption to circular and regenerative principles. PLA and PLA compounds are expected to replace a substantial portion of India's Single Use Plastic (SUP) consumption and applications.

Stefan Barot, with over 35 years of global experience, including 13 years in the bioplastic sector, has been appointed as the President (Chemicals) at BCML. The company aims to not only drive financial growth but also set new standards in India's sustainable economic landscape through the PLA project.

With PTI inputs