BCML to Invest Rs 2,000 Crore in India's First Bioplastic Plant
Balrampur Chini Mills Limited (BCML), a prominent integrated sugar mill company, has unveiled a forward integration initiative worth Rs 2,000 crore. This project marks a significant milestone as it will establish India's inaugural "industrial bioplastic" facility. Based in Kolkata, the company emphasized that this expansion into PLA (Polylactic Acid) production is in perfect harmony with India's sustainability objectives aimed at addressing climate change.
"The new project aims to propel India towards net zero emissions by 2070 with an estimated investment of Rs 2,000 crore in phases over the next 30 months", Balrampur Chini Executive Director Avantika Saraogi said. "Expected to be completed within 30 months, the new venture will mark the establishment of the first-ever industrial bioplastic plant in India. The state-of-the-art PLA factory will command a whopping capacity at a global scale of 75'000 tonnes per annum", the company said.
Although still in the planning phase, the project is set to be situated on a "greenfield site" adjacent to an existing sugar plant. Balrampur Chini Mills Limited owns around ten sugar mills, all located in Uttar Pradesh. Officials noted that a substantial portion of the local infrastructure is already present at these sugar mill sites, facilitating the efficient utilization of sugar as a raw material for PLA production.
"PLA provides a sustainable alternative to traditional plastics, supporting our eco-friendly initiatives and advancing our business model towards sustainability. Balrampur Chini's project aims to lead the way in reducing carbon emissions and promoting innovation in plastic production", Balrampur Chini CMD Vivek Saraogi said.
The initiation of the new venture is further supported by BCML's acquisition of a minority stake in Konkan Speciality Polyproducts Private Limited (Konspec), a well-known entity in the domain of specialty polymers, biopolymers, intermediates, and chemicals, as stated. This move towards bioplastics signifies a substantial transition from the existing linear consumption manufacturing model to one guided by circular and regenerative principles. Moreover, officials highlighted that PLA and PLA compounds have the potential to replace a significant portion of India's current consumption and applications of single-use plastics (SUP).
"We see the utilization of sugar as a raw material in PLA production as pivotal for a sustainable future. Through the PLA project, our goal is to not only drive financial growth but also redefine standards in India's sustainable economic landscape", Saraogi said. The company announced the appointment of Stefan Barot as the President (Chemicals) and a member of the senior management team. With over 35 years of varied global experience, including 13 years in the bioplastic sector, Barot joins the company.
