BALRAMCHINBSEApril 28, 2026

BALRAMPUR CHINI MILLS LTD.

3,694words
80turns
8analyst exchanges
0executives
Key numbers — 31 extracted
INR230 crore
d it. Let me first cover the PLA project itself. As disclosed, there has been a cost overrun of INR230 crore, taking the project cost to INR3,080 crore from INR2,850 crore. This revision is primarily on acc
INR3,080 crore
t itself. As disclosed, there has been a cost overrun of INR230 crore, taking the project cost to INR3,080 crore from INR2,850 crore. This revision is primarily on account of key construction materials, global
INR2,850 crore
ed, there has been a cost overrun of INR230 crore, taking the project cost to INR3,080 crore from INR2,850 crore. This revision is primarily on account of key construction materials, global supply chain disrupt
90%
sruptions, forex movements, and certain refinements in engineering and design, which is the final 90% engineering and review modelling. And together with this, people take advantage of the situation.
INR160 crore
and commercially attractive production segment. The proposed plant has an investment outlay of INR160 crore and is expected to have a production capacity of ~76 lakh boards per annum, with commercial produ
76 lakh
plant has an investment outlay of INR160 crore and is expected to have a production capacity of ~76 lakh boards per annum, with commercial production starting in 18 months. We see this as a highly com
INR450 crore
initiatives, the Board has approved a preferential allotment of equity shares worth approximately INR450 crore at the SEBI price of INR483, which was the SEBI price on that day. In addition, the Board has app
INR483,
d a preferential allotment of equity shares worth approximately INR450 crore at the SEBI price of INR483, which was the SEBI price on that day. In addition, the Board has approved an enabling resolution f
INR200 crore
on that day. In addition, the Board has approved an enabling resolution for raising debentures of INR200 crore. This is just part of the financing because if you are going in for a big project, you need to do
43%
inued participation from the promoters in the fundraise will keep our stake, the family stake, at 43%. So if you see, we have put in 43% of INR450 crore, which is about INR193 crore, which is exactly
INR193 crore
take, the family stake, at 43%. So if you see, we have put in 43% of INR450 crore, which is about INR193 crore, which is exactly synergistic with our existing stake. We believe this reflects the promoters' co
5%
the mind of many of our equity investors. So just let me give you some perspective. A, this is a 5% dilution. B, we are participating, so it is not that there is any intent of lowering the promoter
Guidance — 20 items
Vivek Saraogi
opening
“We thought, in our genre of transparency, to connect with all of you post the board meeting held on 23rd April, 2026, to share an update on the PLA project, the investments around it, and the associated financing initiatives approved at the meeting.”
Vivek Saraogi
opening
“The PLA project is a key strategic initiative for us and forms an important part of our efforts to build a more growth-oriented business, with attractive opportunities emerging across the value chain.”
Vivek Saraogi
opening
“As the project has progressed through implementation and detailed review, we have taken stock of the updated capital requirements and the adjacent opportunities around it.”
Vivek Saraogi
opening
“Let me first cover the PLA project itself.”
Vivek Saraogi
opening
“As disclosed, there has been a cost overrun of INR230 crore, taking the project cost to INR3,080 crore from INR2,850 crore.”
Vivek Saraogi
opening
“Alongside the PLA project, we have identified an attractive opportunity to create value chain around its by-product.”
Vivek Saraogi
opening
“This is just part of the financing because if you are going in for a big project, you need to do something through debentures.”
Vivek Saraogi
opening
“We were India’s first sugar factory to enter into a co-generation project, which later yielded rich dividends down the line and stopped us from getting blackmailed.”
Prashant Biyani
qa
“Sir, what would be the rationale for this equity capital raise so closer to the commercial timeline of the project?”
Vivek Saraogi
qa
“Yes, given the current disruption, I believe that since we started evaluating this project, the board prices we had factored in have already increased by 25% due to the West Asia crisis.”
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Q&A — 8 exchanges
Q
Sir, what would be the rationale for this equity capital raise so closer to the commercial timeline of the project? You would have already tied up with finances and leverage is also not that heavy on the balance sheet.
Vivek Saraogi
Yes, so I believe this question exists in the mind of many of our equity investors. So just let me give you some perspective. A, this is a 5% dilution. B, we are participating, so it is not that there is any intent of lowering the promoter stake. C, the focus is on our ability to run the business smoothly, maintain our credit rating, and ensure financial stability, we are currently raising finance at around 6.75%, and to ensure that no financial ratios are disrupted. The idea behind raising this capital is that there is INR 390 crore outlay involved, as you can see, INR 230 crore plus INR 160
Q
First of all, congratulations on the equity fundraise, after a long time, to the whole Balrampur team. Sir, I had few questions. First one is on the PLA project. Now the cost has escalated by INR230 crore, and you have given the reasons that the engineering changes and supply chain issue. So are these modifications fundamentally altering any yield or efficiency of the plant?
Vivek Saraogi
So, minor tweaking always will lead to it. Yes, you are right, but it is impossible to be able to quantify all that today. Everything has been done, some part is towards improving the engineering, a lot of it is foreign exchange also. So one could not have booked the machinery which used to come in. Euro moved from 90 to 110. So that is not in my hand. I could not have booked the machinery which used to come as per RBI laws, I am told. So that is one major part. Two, this shipping cost, this crude, this ships not coming around Hormuz and the Cape of Good Hope, local transportation. See, you kn
Q
Yes. Nishita Shanklesha: And from the 1.16 lakh tonnes of lactogypsum, we can have around 63 lakh pieces of gypsum boards?
Vivek Saraogi
Yes. Nishita Shanklesha: So the revenue potential that you mentioned of INR150 crore, that is from the 63 lakh pieces of gypsum board per annum? Is that understanding correct? Yes. Nishita Shanklesha: Okay, got it. So I just wanted to understand what is the revenue potential from our PLA project? The whole PLA project? Nishita Shanklesha: Yes. That is the same as what was mentioned earlier—nothing has changed. The PLA project remains the same. This is essentially a value addition to a by-product, which would otherwise be waste if not utilized.
Q
I just wanted to understand the breakdown of the preferential issue of INR450 crore. Where exactly will this be used? Because I believe INR160 crore will be for this lactogypsum plant and INR230 crore for the PLA plant, right?
Pramod Patwari
The balance will be on account of corporate general purposes. Okay, understood. And the PLA plant commissioning, does that remain on track for quarter three? Yes, absolutely. It is a tough job, but we are leaving no stone unturned and as things go, it looks absolutely feasible. Okay, all right, sir. And just wanted to understand what led to this increase in the cost for the PLA plant, this INR230 crore. Was it largely because of the West Asia crisis? Yes, I think if you had joined the call, I have threadbare laid down all the points.
Q
So we are working on the sales strategy and in time to come, we will lay it out threadbare. We are evaluating a few options.
Vivek Saraogi
It’s just the beginning, as the project is still about 18 months away. We are confident, we’ve taken a broad stroke understanding, and we will get into the details in due course. And we are already tracking prices, as you can see.
Q
Sir, pardon my ignorance. If you could run us through the overall picture, with both the PLA and gypsum plants, since a large part of the PLA output will be used as raw material for the gypsum plant, how does that affect costs? And does the payback period change, or does it still stay around five years?
Avantika Saraogi
It remains the same. There is no change at all. So let me explain to everyone the way bagasse comes out when you run a sugar factory. That bagasse is either fed into the boiler for co- generation which you sell power, or you can sell bagasse to paper manufacturers. So, this is the way gypsum will come out. Either you dispose, throw, give to cement at dirt cheap rates, with a huge volume staring at your head, or we have taken this call to convert. And sir, you also mentioned that some of the sugar plant’s output will be used for the PLA plant, which will effectively become a cost input for the
Q
Sir, for marketing of these gypsum boards, would you rather be like an outsourced manufacturer for already existing branded company like Gyproc or anyone, or you would want to take it with your own brand?
Avantika Saraogi
Actually, this is what we also tried to answer before. We are evaluating our options. And we will go for the best one that comes to us slightly closer to the date of commissioning. Give us some time, Prashant. So, once we set up the plant, like three-six months into the game plan, we will start searching and you know, we are already contacting people. We will do what is best for the Company, Prashant. Yes, we do not want to sort of get into some big-time branding expense and all, but yes, we will do what is best for the Company. Yes, and actually those companies have a portfolio to offer to th
Q
Thank you, and all the best. If there are any further questions, we’d be happy to address them offline, please feel free to reach out anytime. I hope I’ve been able to answer all your questions. The objective of today’s call was to provide a broad construct and understanding, so that all investors are on the same page as far as knowledge-sharing perspective. We want to avoid any speculation or uneven access to information, no one should have a preferential understanding. That is why we took the time to engage with all of you and share this overview. Thank you once again, and thank you to all o
Pramod Patwari
Thank you, everyone. Thank you. Disclaimer: This is a transcription and may contain transcription errors. The transcript has been edited for clarity. The Company takes no responsibility for such errors, although an effort has been made to ensure a high level of accuracy.
Speaking time
Vivek Saraogi
27
Avantika Saraogi
11
Prashant Biyani
10
Moderator
9
Pramod Patwari
8
Shailesh Kanani
7
Bharat Seth
4
Rhea Bhatia
3
Jenny Rose
1
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Opening remarks
Jenny Rose
Good afternoon everyone, and thank you for joining us today on this call to discuss Balrampur Chini Mills’ update on the PLA project and the capital raising initiative. We have with us today, Mr. Vivek Saraogi, Chairman and Managing Director of Balrampur Chini Mills, Ms. Avantika Saraogi, Executive Director, and Mr. Pramod Patwari, Chief Financial Officer of the Company. We will begin the call with brief opening remarks from the management, following which we will have the forum open for the question-and-answer session. Before we proceed, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. Additionally, please note that the company is currently in a silent period. We request that you refrain from asking questions related to the quarterly business performance and limit your questions to the current development. With that, I would now like to invite Mr. Saraogi to deliver his opening remarks. Thank you and over to you, sir.
Vivek Saraogi
Good afternoon everyone and thank you for joining us on this call today. We thought, in our genre of transparency, to connect with all of you post the board meeting held on 23rd April, 2026, to share an update on the PLA project, the investments around it, and the associated financing initiatives approved at the meeting. At a broader level, these decisions reflect the direction in which we are taking the business and the way we are positioning ourselves for the next phase. The PLA project is a key strategic initiative for us and forms an important part of our efforts to build a more growth-oriented business, with attractive opportunities emerging across the value chain. As the project has progressed through implementation and detailed review, we have taken stock of the updated capital requirements and the adjacent opportunities around it. Let me first cover the PLA project itself. As disclosed, there has been a cost overrun of INR230 crore, taking the project cost to INR3,080 crore fro
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