PLA Plant to Boost Balrampur Chini’s Green Business Portfolio
One of India’s leading integrated sugar companies, Balrampur Chini Mills, is set to make a major entry into the bioplastics segment with its upcoming Poly Lactic Acid (PLA) manufacturing facility in Uttar Pradesh. The company expects the plant to generate nearly ₹2,000 crore in annual revenue once it reaches full production capacity. The project marks a significant diversification move for the company as it expands beyond sugar, ethanol and power generation into sustainable and biodegradable materials.
₹3,000 Crore Investment for 80,000 TPA PLA Facility
Balrampur Chini is investing more than ₹3,000 crore to establish a PLA bioplastic plant with an annual production capacity of 80,000 tonnes. According to Executive Director Avantika Saraogi, the facility is expected to begin operations during the third quarter of the current financial year, likely in the December quarter. The company said construction activities at the site are progressing rapidly, while parallel work on product development and market analysis is being carried out using imported PLA materials. The new facility is expected to become one of India’s largest PLA manufacturing units and strengthen Uttar Pradesh’s position in the emerging bio-based materials sector.
Strong Demand Expected for Biodegradable Plastic Products
The company remains optimistic about achieving full utilisation soon after commissioning, citing rising demand for eco-friendly and compostable alternatives to conventional plastic. PLA is a biodegradable bioplastic produced from renewable agricultural feedstocks such as sugarcane, corn starch and tapioca roots. Unlike petroleum-based plastics, PLA naturally decomposes without leaving toxic residues, making it increasingly attractive for packaging, food service products and waste management applications.Balrampur Chini has already secured its first institutional order in the segment from the Lucknow Cantonment Board for the supply of compostable garbage bags and other green bioplastic products.
UP Bio Plastic Policy to Support Project Expansion
The project is also expected to benefit from incentives under the Uttar Pradesh Bio Plastic Industrial Policy 2024 announced by the Uttar Pradesh government in October 2024. Industry experts believe the policy could encourage large-scale investments in sustainable manufacturing and help Uttar Pradesh emerge as a hub for bio-based industries. Balrampur Chini’s PLA project is among the first major investments aligned with the policy framework.
Diversification Beyond Sugar and Ethanol
Balrampur Chini Mills currently operates 10 sugar mills across Uttar Pradesh with a combined sugarcane crushing capacity of 80,000 tonnes per day. The company also has distillery operations of 1,050 kilolitres per day and cogeneration capacity of 175.7 MW of saleable power. As part of its broader expansion strategy, the company recently announced plans to establish a lactogypsum processing plant in Uttar Pradesh with an investment of ₹160 crore. The company’s diversification into bioplastics reflects the changing business model of India’s sugar industry, where companies are increasingly focusing on ethanol, green chemicals, sustainable materials and renewable energy.
Revenue Growth Continues Despite Profit Decline
For the financial year 2025-26, Balrampur Chini reported consolidated net profit of ₹378.46 crore, lower than ₹436.92 crore recorded in the previous fiscal year. However, the company’s total income increased to ₹6,307.95 crore from ₹5,504.19 crore in 2024-25.The full financial impact of the PLA project is expected to be visible from the 2027-28 fiscal year, once the plant operates at full capacity throughout the year.
