Balrampur Chini Mills (BALRAMCHIN) Investor update summary

PLA project update and cost escalation

• Project cost increased by INR 230 crore to INR 3,080 crore due to construction material prices, supply chain disruptions, forex movement, and engineering refinements.

• Minor engineering tweaks and currency fluctuations contributed to the cost overrun, with most machinery already ordered.

• Project commissioning remains on track for Q3, with no further cost increases anticipated.

• The project is eligible for a 50% capital subsidy under the UP bioplastic policy, including the revised cost.

Lacto gypsum plant initiative

• New plant to process lacto gypsum byproduct into gypsum boards, with an investment of INR 160 crore and 76 lakh boards annual capacity.

• Expected annual revenue from the plant is around INR 150 crore, with a five-year payback period.

• The initiative monetizes waste, enhances efficiency, and supports sustainability by embedding circular economy principles.

• Gypsum boards will be eco-friendly, replacing mined material, and may appeal to green building markets.

Capital raising and financial strategy

• Preferential equity allotment of INR 450 crore at INR 483 per share and enabling resolution for INR 200 crore in debentures approved.

• Promoters will maintain a 43% stake by participating in the fundraise.

• Funds will cover the PLA cost overrun, lacto gypsum plant, and general corporate purposes.

• Capital raise ensures liquidity, maintains credit rating, and avoids covenant breaches.