Balrampur Chini expects good growth on the back of higher cane crushing, ethanol production this fiscal
Balrampur Chennai Mills (BCML), which is betting big on digitalization and automation to increase efficiency leading to “safer and more profitable operations,” expects good sales growth on the back of rising sugarcane crushing and ethanol production this year. The company, which crushed 93.66 thousand tons of sugarcane in 2022-23, expects a 10 percent increase in crushing operations this season.
The Kolkata-headquartered BCML is looking to invest approximately Rs 1,000 crore this financial year to expand its Kumbi unit in Bihar to increase capacity to 10,000 Tons of Sugarcane per Day (TCD) from the current 8,000 TCD.
According to Vivek Saraogi, Chairman and Managing Director, Balrampur Chini, the company spent close to Rs 1,000 crore during the last financial year on boosting production and a significant portion of the capital expenditure went into automation and enhanced safety in operations at two of its units which resulted in higher efficiency and more consistency in sugarcane crushing.
“We work a lot in the sugarcane business on (ensuring) variety, protecting against disease, and bringing best farming practices across the board to ensure this gets to the farmer so that it increases yield and profitability. Higher yield means greater supply (for me) and if the cane is well taken care of, the recovery is higher… Business line.
He said that while it is still too early to comment on total sugar production during this year, sugar production in the country is likely to approach 32-34 million during the current season 2023-24, which is roughly the same as last year’s levels.
Intensifying ethanol production
Balrampur Chini, which has a distillation capacity of nearly 1,050 kiloliters per day, accounts for about five percent of the country’s total ethanol production and more than 30 percent of Uttar Pradesh’s.
It supplied 17.09 crore liters of ethanol in FY23. After expansion in capacity and increase in contracting with OMCs, supply of ethanol is likely to increase further.
We have been the largest supplier of domestic ethanol in the country and we hope to continue that way. We have the capacity to produce 35 crore liters of ethanol per season and we hope to supply more than 30 crore liters for the ethanol program next year.
The distilling segment accounts for nearly 21 per cent of the total turnover of the company, which was Rs. 4,666 crore on 31st March 2023. Going forward, the distilling segment is expected to contribute around 35 per cent of the total revenue of the company.
sustainable operations
Saraoji said that BCML has achieved success in de-mining groundwater in a few of its units and has enhanced green cover through extensive plantations. The company has planted about 2,50,000 trees in three years and plans to plant 10,00,000 trees in the next five years.
The company’s non-hazardous waste has decreased by about 10 percent while effluent emissions have fallen by 24 percent over the past five years. Apart from that, the company’s captive consumption of renewable energy, as a percentage of total power generated, has increased, reducing its dependence on fossil fuels.