Ethanol stock in focus after U.P CM Yogi Adityanath lays foundation for India’s First Biopolymer Plant

This Ethanol stock which deals in the business of integrated sugar with allied businesses of distillery operations and cogeneration of power, is in focus after U.P CM Yogi Adityanath lays the foundation for India’s first Biopolymer Plant.

Price Movement

In Monday’s trading session, Balrampur Chini Mills Ltd’s share price touched a day’s low of Rs. 468.50, which was down by 2.61 percent. The share price reiterated from the day’s low and was trading at Rs. 477.95, which is 0.65 percent higher than the previous closing price of Rs. 481.10. 

In the past year, the stock has delivered a return of around 29 percent and has outperformed the Nifty Index. 

What Happened

The company’s stock was in focus after Balrampur Chini Mills marked the milestone with the foundation stone laying ceremony of India’s first Polylactic Acid (PLA) biopolymer manufacturing facility at Kumbhi, with the presence of Uttar Pradesh Chief Minister, Yogi Adityanath. 

The plant is strategically located near to BCML’s existing sugar factory in Kumbhi. The plant integrates operational synergies to improve resource efficiency and optimize supply chain management with a gross investment of Rs. 2,850 crores.

The plant holds an annual production capacity of 80,000 tonnes per annum and produces 100 percent industrially compostable & bio-based PLA which is used in a wide range of applications. This material is an ideal alternative for single-use plastic such as food trays, straws, disposable cutlery, carry bags, etc. It can serve Industries like Biomedical, Packaging, Food Service Ware, Textile, and Others.

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Management Commentary

Commenting on the development, the Chairman & MD of Balrampur Chini Mills (BCM), Vivek Saraogi said “We are deeply honoured as the ground-breaking ceremony of this project commenced in the auspicious presence of Hon’ble CM Shri Yogi Adityanath Ji. The establishment of India’s first PLA biopolymer manufacturing facility represents a monumental leap in our nation’s industrial sustainability journey. By producing PLA at industrial scale, we are not only reducing dependence on fossil fuels but also setting new benchmarks for responsible manufacturing.”

Further, the Executive Director, of BCM, Avantika Saraogi said “This plant is a testament to the synergy between progressive policy frameworks and private sector innovation. This plant will augment in positioning Uttar Pradesh as a leader in biopolymer production, boosting industrial growth and making India a key player in the bio-based economy, globally by tapping into the rich biomass reserves of the country and paving the way for its emergence as a key export hub”.

Q3FY25 Financial Performance

Their Q3FY25 results show revenue from operations of Rs. 1,192 crore which declined by 3.08 percent year on year, from Rs. 1,230 crore in Q3FY24. Its net profit declined by 23.07 percent year on year, from Rs. 91 crores in Q3FY24 to Rs. 70 crores in Q3FY25. 

Business Segment

The company recognizes its operational revenue from Sugar which contributes around 85.35 percent, Distillery contributed around 14.21 percent, and the remaining 0.44 percent from Others as of the December 2024 quarter. 

About the company

Balrampur Chini Mills Limited is a leading Indian sugar manufacturer, established in 1975, with a focus on sugar, ethanol, and power cogeneration, operating across multiple plants in Uttar Pradesh.

Written by Santhosh S

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