Rs 160 crore Kumbhi facility to convert PLA by-product into high-value gypsum boards

Balrampur Chini Mills Limited (BCML) has unveiled yet another strategic step in its evolution towards an integrated and sustainable business model, announcing the establishment of a state-of-the-art Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh. With an estimated investment of up to Rs 160 crore, the proposed facility will manufacture gypsum boards using lactogypsum—a value-added by-product derived from the company’s upcoming Polylactic Acid (PLA) project—signaling a decisive move towards circularity and resource optimisation.

The plant, designed with an annual production capacity of approximately 76 lakh gypsum boards, is expected to commence commercial operations by December 2027. This initiative not only underscores BCML’s commitment to innovation-led growth but also reflects its strategic focus on unlocking incremental value from industrial by-products.

Commenting on the development, Avantika Saraogi, Executive Director at BCML, emphasised the company’s forward-looking vision, noting that the Board’s decisions are closely aligned with its long-term growth roadmap. She highlighted that the proposed fund raise will play a pivotal role in supporting expansion initiatives, including the Kumbhi facility, while reinforcing the company’s dedication to sustainable and integrated operations. The significant promoter participation—approximately 43 per cent in the proposed capital raise—further underlines confidence in the company’s strategic direction and future potential.

In tandem with this announcement, the Board has approved a series of measures aimed at strengthening BCML’s financial and operational foundation. A preferential issue of equity shares aggregating to approximately Rs 450 crore, subject to shareholder approval, has been cleared to bolster the balance sheet and fund upcoming projects. Additionally, the company has authorised the issuance of Non-Convertible Debentures (NCDs) of up to Rs 200 crore in one or more tranches, enhancing its financial flexibility.

The company also provided an update on its flagship PLA project, revising the capital expenditure to approximately Rs 3,080 crore to reflect evolving project requirements and cost escalations. This adjustment reaffirms BCML’s commitment to maintaining execution discipline while adapting to dynamic market and project conditions.

Vivek Saraogi, Chairman and Managing Director, articulated the company’s calibrated approach to expansion, emphasising a strong focus on integrated growth and prudent capital allocation. He noted that investments in by-product utilisation, alongside progress on the PLA project and capital-raising initiatives, are central to BCML’s strategy of building a resilient and future-ready enterprise.

Collectively, these developments position Balrampur Chini Mills at the confluence of sustainability and scale—where innovation, efficiency, and long-term value creation converge to redefine the contours of growth in the agro-industrial landscape.