In Short:
Balrampur Chini Mills is increasing revenue from non-sugar businesses, with a rise in distillery segment contributions. The company invested in distillery and co-generation to reduce reliance on sugar. Balrampur Chini Mills now has one of the largest distillery capacities in the Uttar Pradesh sugar industry. The company plans to manufacture bio-based polylactic acid to reduce dependence on sugar further.
Balrampur Chini Mills’ Revenue Growth
Imagine a company that is not afraid to break boundaries and explore new horizons. A company that believes in diversifying its revenue streams for a sustainable future. That’s exactly what Balrampur Chini Mills has been doing, and the results are truly remarkable.
Over the last five financial years, this Kolkata-based powerhouse, India’s second largest private sector sugar manufacturer, has seen a staggering 15 per cent rise in revenue contribution from its distillery segment. This segment now accounts for over 26 per cent of the company’s total revenues.
Non-Sugar Businesses
While sugar used to dominate the revenue charts, Balrampur Chini Mills made a strategic shift towards diversifying its portfolio. The company has been heavily investing in its non-sugar businesses like ethanol and cogenerated power to reduce its reliance on sugar. This move has paid off handsomely.
Today, Balrampur Chini Mills boasts five distillery units with a capacity of 1,050 kilolitres per day (KLPD), making it one of the leaders in the Uttar Pradesh sugar industry. The company’s focus on ethanol production is driven by a bullish outlook on the Indian ethanol market.
Despite facing challenges like government restrictions on ethanol production, Balrampur Chini Mills remains optimistic about its future. The company is determined to achieve its goal of generating a third of its revenues from ethanol, even if it takes a couple of years longer than expected.
‘Diversifying’ for a Sustainable Future
But Balrampur Chini Mills is not stopping there. In a bold move, the company recently announced its foray into the manufacture of cane-based polylactic acid, a bio-based alternative to single-use plastics. This ambitious ₹2,000-crore investment marks a new chapter in the company’s journey towards sustainability and reducing its dependence on sugar.
With 10 co-generation units and a saleable capacity of 175.7 MW, Balrampur Chini Mills is a shining example of a company that is not afraid to innovate and adapt to changing times. As the company continues to broaden its horizons and diversify its revenue streams, the future looks bright for this trailblazing industry leader.
