Sugar maker Balrampur Chini Mills will invest ₹160 crore to set up a lactogypsum processing plant in Kumbhi, Uttar Pradesh.
A lactogypsum processing plant basically converts industrial waste into infrastructural and agricultural materials.
Breaking it down: as part of this, the company will make gypsum boards (used for walls and ceilings in buildings) from its Polylactic Acid project.
The plant will have a capacity of about 76 lakh boards a year and will start by December 2027.
The reason: the plan is to convert waste into valuable products while expanding the business, which is part of a broader push to use resources more efficiently.
Background: the company has also increased the project cost to around ₹3,080 crore (from ₹2,850 crore earlier) and plans to raise ₹450 crore via equity and $200 million through non-convertible debentures to fund expansion.
Larger picture: this comes as India’s sugar industry sees steady 5-8% growth in FY26, driven by a strong crop and a shift toward ethanol.
With the government pushing for 100% ethanol blending, the sector is balancing near-term pressures with a long-term play on energy self-reliance.

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