The grant has been awarded under the government's BioE3 (Biotechnology for Economy, Environment & Employment) initiative. According to the company, the facility will support the development of advanced bio-based materials and indigenous biomanufacturing capabilities.

The pilot-scale R&D facility will be established at the company's integrated manufacturing complex in Kumbhi, Uttar Pradesh. Balrampur Chini Mills is also setting up an 80,000 TPA integrated commercial PLA manufacturing facility at the site.

The company said the R&D facility will focus on developing specialised PLA grades and advanced PLA co-polymers for high-value applications. It will also generate techno-economic data and process know-how for commercial-scale manufacturing, support customer validation and facilitate the scale-up of technologies for commercial production.

The facility will cover product development activities ranging from understanding customer requirements and developing PLA formulations to producing pilot samples, validating product performance and preparing technologies for commercial-scale manufacturing. It will also support collaboration with industry, academia and research institutions.

Balrampur Chini Mills said the facility is intended to bridge the gap between laboratory research and commercial manufacturing and support the development of skilled talent for India's emerging biomanufacturing sector.

Balrampur Chini Mills is an integrated sugar company with 10 sugar factories in Uttar Pradesh and an aggregate sugarcane crushing capacity of 80,000 TCD. Its allied businesses include distillery operations and cogeneration of power, with distillery capacity of 1,050 KLPD and saleable cogeneration capacity of 175.7 MW. The company is also setting up an 80,000 TPA PLA plant.

On a consolidated basis, Balrampur Chini Mills' net profit declined 14.39% to Rs 44.15 crore while net sales rose 6.13% to Rs 1636.79 crore in Q1 June 2026 over Q1 June 2025.

Shares of Balrampur Chini Mills jumped 4.03% to settle at Rs 686 on Friday, 25 September 2026.