Balrampur Chini Mills Ltd expects to commence commercial operations at its 80,000-tonne-per-annum (TPA) polylactic acid (PLA) manufacturing plant in Uttar Pradesh during the fourth quarter of financial year 2026-27, as construction progresses towards completion.
The company is investing approximately ₹3,080 crore in the project, which is expected to generate annual revenue of around ₹2,000 crore when operating at full capacity.
Chairman and Managing Director Vivek Saraogi said the project remained largely on schedule, with construction activities progressing in line with the company’s execution plans. Commercial operations are targeted for Q4 FY27, covering January to March 2027.
Balrampur Chini’s PLA Project Reaches Advanced Construction Stage
According to the company’s Q2 FY27 investor presentation, dated 4 November 2026, Balrampur Chini Mills had spent approximately ₹2,397 crore on the PLA project as of 15 October 2026.
The presentation also outlined the project’s construction progress. Around 95% of the storage tanks had been erected or completed, while piping work had reached approximately 79%. Structural work was around 88% complete, and approximately 60% of the electrical work had been completed. The company also reported that more than 3,000 people were present at the project site on an average basis.
The plant’s planned capacity has been optimised from 75,000 TPA to 80,000 TPA. The company’s presentation places project commissioning in the second half of FY27, while management has specified Q4 FY27 for the commencement of commercial operations.
₹2,000 Crore Annual Revenue Expected at Full Capacity
Balrampur Chini Mills estimates that the PLA facility could generate approximately ₹2,000 crore in annual revenue once it reaches full production capacity.
The project’s gross capital expenditure is estimated at ₹3,080 crore. The company’s proposed funding structure includes approximately ₹1,650 crore in debt and ₹1,430 crore through equity and internal accruals.
The investment forms part of the company’s expansion beyond its established sugar, distillery and power cogeneration businesses into bio-based materials.
Balrampur Chini Mills operates 10 sugar factories in Uttar Pradesh, with an aggregate sugarcane crushing capacity of 80,000 tonnes per day. Its existing operations also include distillery capacity of 1,050 kilolitres per day and saleable cogeneration capacity of 175.7 MW.
Uttar Pradesh Bioplastic Policy Provides Project Incentives
The project is also covered by the Uttar Pradesh government’s Bio Plastic Industrial Policy 2024, announced on 4 October 2024.
In its investor presentation, Balrampur Chini Mills confirmed that Invest UP, the state’s investment promotion and facilitation agency, had issued a Letter of Comfort approving the project’s eligibility for incentives, subject to the commencement of commercial operations and fulfilment of the applicable conditions.
The policy provides eligible investments with a 50% capital subsidy, disbursed over seven years, a 5% interest subvention for seven years, and reimbursement of 100% of net State Goods and Services Tax (SGST) for 10 years. It also provides electricity duty and qualifying stamp duty exemptions. The overall incentive is subject to a cap of 200% of eligible investment.
The capital subsidy is linked to capacity utilisation requirements, making actual production levels relevant to the incentives available to the company.
The planned PLA facility represents a significant expansion of Balrampur Chini Mills’ business into industrial-scale bioplastics manufacturing, with commercial operations targeted for the final quarter of FY27.
