Balrampur Chini Mills Secures Rs 75 Crore Grant for PLA R&D Facility

Balrampur Chini Mills has been awarded a substantial grant of Rs 75 crore by the Biotechnology Industry Research Assistance Council (BIRAC), an agency under the Department of Biotechnology, Government of India. This funding is aimed at supporting the company's efforts to set up a pilot-scale research and development (R&D) facility focused on Poly Lactic Acid (PLA) co-polymers, with a production capacity of 100 tonnes per annum (TPA).

The grant falls under the government’s BioE3 initiative, which stands for Biotechnology for Economy, Environment & Employment. This program is intended to foster innovation in biotechnology, encouraging the development of sustainable and economically viable bio-based products. Balrampur Chini Mills plans to utilize the grant to enhance its R&D capabilities at its Kumbhi complex located in Uttar Pradesh.

Alongside this new pilot-scale facility, the company is also in the process of establishing a larger commercial PLA manufacturing plant with an annual capacity of 80,000 tonnes at the same site. The PLA co-polymer R&D facility will serve as a critical step in developing advanced bio-based materials that can meet the growing demand for eco-friendly alternatives in various industries.

The R&D center will focus heavily on creating specialized grades of PLA and innovative PLA co-polymer formulations designed for high-value applications. This includes generating detailed techno-economic data and acquiring process knowledge necessary for scaling production to commercial levels. By doing so, the company aims to streamline the transition from research to manufacturing, ensuring that new PLA variants meet both performance standards and customer expectations.

Additionally, the facility will undertake comprehensive product development activities. These range from identifying market needs and customizing PLA formulations, to producing pilot samples and validating their performance through rigorous testing. The knowledge generated will support technology scale-up, ultimately facilitating the launch of commercially viable PLA products.

Balrampur Chini Mills also intends to foster collaborations between industry players, academic institutions, and research organizations through this R&D hub. Such partnerships are expected to accelerate innovation, broaden expertise, and strengthen India’s position in the bio-based manufacturing sector.

The company highlights that the new R&D facility will bridge the gap between laboratory research and full-scale manufacturing, a crucial phase that often determines the commercial success of bio-based materials. Furthermore, it will contribute to building a skilled workforce equipped to handle emerging technologies in biomanufacturing, supporting India’s broader ambitions in this field.

Balrampur Chini Mills is a prominent player in India’s sugar industry, operating 10 sugar factories across Uttar Pradesh with a combined sugarcane crushing capacity of 80,000 tonnes crushed per day (TCD). Beyond sugar production, the company has diversified into allied sectors such as distillery operations, with a capacity of 1,050 kilolitres per day (KLPD), and power cogeneration, with a saleable capacity of 175.7 megawatts (MW).

The firm’s move to expand into PLA manufacturing aligns with global trends toward sustainable materials, as PLA is a biodegradable polymer derived from renewable resources. This shift represents an effort to reduce reliance on petroleum-based plastics and address environmental concerns.

On the financial front, Balrampur Chini Mills reported a consolidated net profit of Rs 44.15 crore for the first quarter ending June 2026, marking a 14.39 percent decline compared to the same quarter in the previous year. However, net sales improved by 6.13 percent, reaching Rs 1,636.79 crore during the period. Following the announcement of the BIRAC grant and ongoing projects, the company’s shares rose 4.03 percent to close at Rs 686 on Friday, 25 September 2026.

This development underscores Balrampur Chini Mills’ commitment to innovation and sustainability, positioning it to play a significant role in India’s emerging biomanufacturing landscape.