Balrampur Chini Mills will set up a Lactogypsum Processing Plant at Kumbhi, Uttar Pradesh, with an investment of ₹160 crore.

The proposed facility will manufacture gypsum boards using lactogypsum, a by-product of the company’s upcoming Polylactic Acid project. The plant is expected to have a production capacity of about 76 lakh gypsum boards per annum. The new plant is expected to start commercial production by December, 2027.

The company has also revised the capital expenditure for its Polylactic Acid project to about ₹3,080 crore from earlier estimate of ₹2,850 crore, reflecting updated project requirements and cost escalations.

The Board also approved a preferential issue of equity shares of ₹450 crore. The capital infusion will strengthen the company’s balance sheet and support upcoming expansion.

The company will raise $200 crore through Non-Convertible Debentures issuance in one or more tranches.

Avantika Saraogi, Executive Director, BCML said the proposed fund raise is aimed to support next phase of expansion and enable investments in the upcoming gypsum processing plant at Kumbhi.

The capital expenditure commitments, along with promoters participation of about 43 per cent in the proposed fund raise, reaffirms the promoters’ continued confidence in the company’s growth strategy and the long-term potential of these projects, she said.

Vivek Saraogi, Chairman & Managing Director, BCML said the company continues to take a calibrated approach towards growth, with a clear focus on strengthening its integrated business model.

“We remain focused on prudent capital allocation and disciplined execution of our expansion plans,” he said.

Published on April 25, 2026