Balrampur Chini To Setup India’s First Polylactic Acid Plant

India’s first Polylactic Acid (PLA) Biopolymer plant is poised to serve as an alternative to banned Single-Use Plastic (SUP) items such as straws, disposable cutlery, food trays, bottles, curd cups, and curry bags, among others.

India’s First Polylactic Acid (PLA) Biopolymer Facility

The facility, estimated to cost Rs 2,850 crore, will use advanced technology from world-class providers and will integrate operational synergies, enhance resource efficiency, and optimize supply chain management.
The plant will operate entirely on renewable energy throughout its production process and will be the first plant where sugarcane is transformed into PLA at a single, integrated site.
The plant is designed to produce 100% industrially compostable and bio-based PLA, which has a wide range of applications.
The PLA market is experiencing robust growth due to its biodegradable nature, making it particularly attractive for packaging applications in the food and beverage industry.

Balrampur Chini Mills Limited (BCML), one of India’s largest integrated sugar companies, has laid the foundation stone for India’s first Polylactic Acid (PLA) biopolymer manufacturing facility at Kumbhi, Uttar Pradesh. Polylactic Acid (PLA) is poised to serve as an alternative to banned Single-Use Plastic (SUP) items such as straws, disposable cutlery, food trays, bottles, curd cups, and curry bags, among others.

The PLA manufacturing plant, proposed at a capital expenditure of Rs 2,850 crore, will utilize cutting-edge technology from world-class providers. Strategically located adjacent to BCML’s existing sugar factory, this state-of-the-art facility is designed to integrate operational synergies, enhance resource efficiency, and optimize supply chain management.

A Milestone in India’s Industrial Sustainability

Vivek Saraogi, Chairman & Managing Director of BCML, stated, “The establishment of India’s first PLA biopolymer manufacturing facility marks a monumental leap in our nation’s journey towards industrial sustainability. By producing PLA on an industrial scale, we are not only reducing dependence on fossil fuels but also setting new benchmarks for responsible manufacturing. I extend my heartfelt congratulations to our team for achieving this significant milestone. With this largest investment in the company’s 50-year legacy, BCML continues to pave the way for an eco-friendly, self-reliant India, positioning the country as a global leader in biopolymer manufacturing.”

Setting up a PLA manufacturing plant is considered a pioneering effort by any Indian company. This initiative positions Uttar Pradesh as the epicenter of India’s biopolymer revolution, reinforcing the state’s commitment to sustainable industrial growth. The plant’s installed capacity is estimated at 80,000 tonnes per annum. However, the timeline for the commencement of commercial production remains unknown. Attempts to reach company officials did not elicit a response.

This plant will be India’s first industrial-scale biopolymer facility and is set to establish a new global benchmark. It will operate entirely on renewable energy throughout its production process. It will also be the first plant where sugarcane is transformed into PLA at a single, integrated site, showcasing a truly closed-loop sustainability model.

Polylactic Acid: A Game-Changer for Sustainable Plastics

The plant is designed to produce 100 percent industrially compostable and bio-based PLA, which has a wide range of applications. It serves as an ideal alternative to banned Single-Use Plastic (SUP) items such as straws, disposable cutlery, food trays, bottles, curd cups, and carry bags. Furthermore, this PLA can be anaerobically digested to produce biogas and fertilizer, addressing both waste and emissions challenges. The production process emits 68 percent less greenhouse gas compared to conventional plastics. As the world’s first PLA plant fully powered by renewable energy, it has the potential to reduce emissions even further.

Ms. Avantika Saraogi, Executive Director of Balrampur Chini Mills Limited, expressed her gratitude, stating, “This plant is a testament to the synergy between progressive policy frameworks and private sector innovation. It will position Uttar Pradesh as a leader in biopolymer production, driving industrial growth and establishing India as a key player in the global bio-based economy. By leveraging the country’s rich biomass reserves, this facility paves the way for India to emerge as a significant export hub. Through the attraction of both domestic and foreign investments, we aim to make meaningful contributions to strengthening India’s circular economy while reducing reliance on plastic imports.”

This PLA project is expected to generate 225 direct jobs in manufacturing, research and development (R&D), and operations, while also creating over 2,000 indirect jobs across the value chain. This aligns with the Uttar Pradesh Bioplastic Industry Policy 2024. Additionally, skill development collaborations with technical institutions will empower women and young professionals to contribute to sustainable industries.

Strengthening India’s Circular Economy

From a financial perspective, this facility will bolster Uttar Pradesh’s industrial economy, establishing it as a hub for biopolymer production and exports. It is anticipated to attract both foreign and domestic investments, driving advancements in green chemistry and sustainable manufacturing. Furthermore, the project will promote India’s circular economy while reducing dependence on imported plastics.

Aligning with the ‘Atmanirbhar Bharat’ and ‘Swachh Bharat’ initiatives, this project enhances India’s global reputation in sustainable manufacturing. Additionally, collaborations with government and industry bodies will help drive large-scale PLA adoption across sectors such as packaging, food service ware, biomedical applications, textiles, and more.

Polylactic Acid Market Growth and Global Demand

India has been entirely import-dependent for PLA to meet its domestic demand. The PLA market is experiencing robust growth due to its biodegradable nature, making it particularly attractive for packaging applications in the food and beverage industry, as well as in healthcare and other sectors where environmentally friendly alternatives are preferred. Globally, the PLA market is also witnessing significant demand growth, supported by efforts to expand production capacity to meet this rising need. This growth is driven by an increased focus on sustainable and biodegradable plastic alternatives.

Growing concerns about environmental sustainability and stricter regulations against traditional plastics have created a significant gap between PLA production capacity and actual demand. The current global operating rate is estimated at 60-70 percent due to ongoing capacity expansions, particularly in China. While PLA consumption has already been experiencing steady growth, the market is expected to see a substantial surge as new production facilities come online to meet the rising demand for eco-friendly alternatives.

About Balrampur Chini Mills Limited (BCML)

Balrampur Chini Mills Limited (BCML) is one of India’s largest integrated sugar companies, excelling in distillery operations and power cogeneration. With ten sugar factories across Uttar Pradesh, BCML has an aggregate crushing capacity of 80,000 tonnes crushed per day (TCD), distillery operations with a capacity of 1,050 kiloliters per day (KLPD), and a saleable power cogeneration capacity of 175.7 megawatts (MW). BCML continues to lead the sector with innovative, eco-friendly solutions.