Balrampur Chini Mills zooms on getting nod to enter new line of business to manufacture Polylactic Acid
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Balrampur Chini Mills is currently trading at Rs. 385.25, up by 13.40 points or 3.60% from its previous closing of Rs. 371.85 on the BSE.
The scrip opened at Rs. 381.30 and has touched a high and low of Rs. 389.95 and Rs. 380.45 respectively. So far 174510 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 485.80 on 30-Nov-2023 and a 52 week low of Rs. 349.50 on 27-Feb-2023.
Last one week high and low of the scrip stood at Rs. 389.95 and Rs. 365.00 respectively. The current market cap of the company is Rs. 7772.39 crore.
The promoters holding in the company stood at 42.90%, while Institutions and Non-Institutions held 32.12% and 24.97% respectively.
Balrampur Chini Mills has received an approval to enter a new line of business to manufacture Polylactic Acid (PLA), to be used for production of bioplastic. The Board of Directors of the Company in its meeting held on February 18, 2024, has accorded its approval for the same. The Board of Directors approved an estimated investment of Rs 2000 crore (Rs 800 crore to come from internal accruals and Rs 1200 crore through debt) in phases over a period of around 2.5 years. The expected benefits from the PLA project are significant, emphasizing that bioplastics are gaining momentum. The investment into PLA is seen as a substantial opportunity for the Company to achieve growth.
The government has been actively advocating for sustainable business practices in various forums, emphasizing the urgency of combating climate change impacts on the environment. Measures such as the prohibition of single-use plastics have been implemented to reduce carbon footprints. In the 2024 Budget, a significant step towards promoting green growth is highlighted with the introduction of a new scheme for bio-manufacturing and bio-foundry. This initiative aims to boost environmentally friendly alternatives like biodegradable polymers, bio-plastics, bio-pharmaceuticals, and bio-agricultural inputs. The overarching goal is to transform the current linear consumption manufacturing paradigm into one grounded in circular and regenerative principles.
This strategic shift is reflected in the company’s engagement with Polylactic Acid (PLA) and bioplastics using sugar as a raw material. Recognizing a unique opportunity, PLA offers dual benefits as a bio-based and biodegradable material, presenting a sustainable substitute for conventional plastics in various applications. This aligns seamlessly with its commitment to environmentally conscious practices and synergizes with its existing business model, contributing to a more sustainable and responsible approach to manufacturing.
Balrampur Chini Mills is one of the largest integrated sugar manufacturers in India. Its business portfolio consists of manufacturing and marketing of sugar, ethyl alcohol, ethanol, generation and selling of power and also manufacturing and marketing of organic manure.
