A new scientific study conducted by a premier academic institution under the Ministry of Chemicals & Fertilizers, Government of India—dedicated to higher and technical education across the plastics value chain and operating through a network of centres across the country—has confirmed that Polylactic Acid (PLA), a compostable polymer, degrades into safe natural substances in Indian soil conditions without leaving harmful microplastics behind. The findings, disclosed by Balrampur Chini Mills pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on 6th May, 2026, mark a significant development for the Indian bioplastics sector.

Key Study Findings

The study evaluated PLA microplastics in Indian soil over 30, 60, 90, 120, and 180 days, demonstrating substantial degradation. The following table summarises the core outcomes:

The key findings of the study can be summarised as follows:

• PLA breaks down naturally: Over 180 days, PLA microplastics reduced drastically from 287 particles/kg to just 18 particles/kg, showing near-complete degradation.
• Conventional plastics persist: Conventional plastics showed almost no reduction in microplastics, remaining in soil even after 6 months.
• No toxic residue from PLA: Heavy metal levels in degraded PLA remained well within safe international limits, making it safe for soil and agriculture.
• Supports soil life: Earthworms exposed to PLA showed healthy biological activity and were able to process it, unlike fossil-based plastics.

Scientific and Industry Perspectives

S K Nayak, Former Director General of Central Institute of Petrochemicals Engineering & Technology (CIPET), commented on the findings: "The recent study findings highlight a clear difference in how materials behave in the environment. Conventional plastics resist degradation and persist as microplastics in soil. In contrast, PLA undergoes rapid breakdown under sunlight and soil conditions, followed by true biodegradation. Within 180 days, it is largely converted into simple, bio-assimilable compounds, as confirmed by scientific analysis and biological testing. This establishes that PLA does not contribute to long-term microplastic pollution and offers a scientifically validated sustainable alternative."

Vikram Bhanushali, President of the Indian Compostable Polymer Association (ICPA), stated: "This study marks an important milestone in demonstrating that PLA and PLA-based materials can effectively biodegrade under Indian environmental conditions without leaving harmful residues. It reinforces the role of certified compostable solutions in applications where biodegradation is essential to prevent the accumulation of unrecoverable plastic waste. Importantly, these findings provide robust scientific backing for India to further reinforce and evolve its policy framework by formally integrating truly biodegradable materials into its core environmental, circularity, and sustainability strategies."

Company's Position on PLA

Avantika Saraogi, Executive Director, Balrampur Chini Mills Ltd, remarked: "This study represents a significant milestone for the Indian bioplastics sector. Traditionally, discussions were based on perceptions. However, today, there is scientific proof that materials like PLA can be recycled back into nature without creating any long-term environmental damage. The future of plastics should be focused not only on minimizing plastic waste but also developing materials that help in the recycling process within nature and that is the direction in which the industry is moving forward."

About Balrampur Chini Mills Limited

Balrampur Chini Mills Limited is one of the largest integrated sugar companies in India. The company's allied businesses comprise distillery operations and cogeneration of power. It presently has ten sugar factories located in Uttar Pradesh, India, with an aggregate sugarcane crushing capacity of 80,000 TCD, distillery and co-generation operations of 1050 KLPD and 175.7 MW (Saleable) respectively. The company is also in the process of setting up India's first Poly Lactic Acid (PLA) plant of 80,000 TPA capacity.

Balrampur Chini Mills Limited held a conference call on April 28, 2026, to provide updates on its PLA project and capital raising initiatives. The company disclosed a cost overrun of INR230 crore in the PLA project, revising the total project cost to INR3,080 crore from the previously estimated INR2,850 crore. The revision was attributed to key construction materials, global supply chain disruptions, forex movements, and certain refinements in engineering and design.

Capital Raising Initiatives

To support the PLA project and new initiatives, the Board approved a preferential allotment of equity shares worth approximately INR450 crore at the SEBI price of INR483 per share. Additionally, the Board approved an enabling resolution for raising debentures of INR200 crore. The promoters will participate in the fundraise, maintaining their stake at 43%, which amounts to approximately INR193 crore of the total equity raise.

Lactogypsum Processing Plant

The Board has approved a lactogypsum processing plant at Kumbhi with an investment outlay of INR160 crore. This facility will convert lactogypsum, a synthetic and eco-friendly by-product generated during the PLA manufacturing process, into gypsum boards. The plant is expected to have a production capacity of approximately 76 lakh boards per annum, with commercial production scheduled to commence in 18 months.

Financial Projections and Capacity

Project Timeline and Commissioning

The PLA plant commissioning remains on track for quarter three. Management indicated that machinery is expected to arrive soon, and this should represent the final revision in project cost. The company noted that the revised costs remain eligible for the 50% capital subsidy under the UP bioplastic policy. The lactogypsum plant is expected to begin commercial production in 18 months.