Balrampur Chini Mills: Enhancing Efficiency and Sustainability Through Major Investments
Mohit Srivastava (KMVS)
Balrampur Chini Mills (BCML), which is making significant investments in digitization and automation to enhance efficiency and achieve safer and more profitable operations, expects substantial business growth this year due to increased sugarcane crushing and ethanol production. The company, which crushed 9.366 million tons of sugarcane in 2022-23, anticipates a nearly 10% increase in crushing for 2023-24.
Based in Kolkata, BCML plans to invest around ₹100 crore this fiscal year to expand its unit in Kumbhi, Uttar Pradesh, with the goal of increasing its production capacity from the current 8,000 TCD (tons of cane per day) to 10,000 TCD.
According to the company, it spent approximately ₹1,000 crore on increasing production during the previous fiscal year, with a significant portion of the capital expenditure focused on automation and enhancing operational safety at its two units, resulting in higher efficiency and greater stability in sugarcane crushing.
We are working hard to implement better sugarcane varieties, disease protection, and best agricultural practices to ensure that it reaches farmers and improves their yield and profitability. Increased yield means more supply (for us) and if the sugarcane is well managed, there is more recovery… essentially, it is a win-win situation.
While it is still early to comment on the total sugar production for this year, the country’s sugar production for the 2023-24 season is expected to be around 32-34 million tons, which is roughly in line with last year’s levels.
Sustainable Operations
According to the company, BCML has successfully reduced groundwater extraction to zero in some of its units and has increased green cover through extensive afforestation. The company has planted approximately 250,000 trees over the past three years and intends to plant 1,000,000 trees in the next five years.
Over the past five years, the company has reduced its non-hazardous waste by about 10% and cut water discharge by 24%. Additionally, the company’s captive consumption of renewable energy as a percentage of total electricity produced has increased, reducing its reliance on fossil fuels.