Balrampur Chini Mills Limited board approves revised capex of Rs. 425 crore for distillery plant

The Board of Directors of Balrampur Chini Mills Limited at its meeting held today, i.e. 10th April, 2021 approved the revised capex of Rs. 425 crores for the 320 KLPD Distillery Plant which was earlier approved at Rs. 320 crores by the Board on 4th November 2020 and disclosed to the Stock Exchanges accordingly.

The increase in capex to the tune of Rs. 105 crores is mainly owing to:
- Inclusion of 20 KLPD ENA plant, within the overall 320 KLPD distillery plant
- Higher storage capacity for raw material and finished goods
- Sharp rise in steel prices
- Change in designs of equipment's to bring in more efficiency and embrace automation.

The higher investment would result in higher efficiency, better recovery of ethanol from juice which will add to the bottom line and will result in better payback than envisaged earlier.

Needless to mention that the plant will be a complete Zero Liquid Discharge plant (ZLD) equipped with incinerator boiler and turbine for cogeneration of power.

The plant which is expected to be commissioned by December 2022 would operate on dual fuel i.e. on sugarcane juice during the season and on grains during off season. The plant is expected to generate annual revenue of around Rs. 650 crores and has a cash pay-back period of less than 4 years.

The Company proposes to borrow Rs. 220 crores (the same amount which was envisaged/ disclosed earlier}, from banks under the Scheme for extending financial assistance for enhancement of Ethanol capacity as announced by the Government of India. Balance amount will be funded through internal accruals. The Company has already received in-principle approval from the Department of Food and Public Distribution, Government of India, confirming the eligibility for interest subvention on said loan of Rs. 220 crores.

Apart from the aforesaid, the other details submitted by us on 4th November, 2020 w.r.t. the captioned subject remains unchanged.

Shares of BALRAMPUR CHINI MILLS LTD. was last trading in BSE at Rs.234 as compared to the previous close of Rs. 234.1. The total number of shares traded during the day was 250181 in over 5028 trades.

The stock hit an intraday high of Rs. 247.9 and intraday low of 230. The net turnover during the day was Rs. 60019916.

Source : Equity Bulls

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