Balrampur Chini Mills Limited: history, ownership, mission, how it works & makes money

A Brief History of Balrampur Chini Mills Limited

Established in 1975, Balrampur Chini Mills Limited (BCML) has grown to become one of India's largest integrated sugar manufacturing companies. The company is headquartered in the state of Uttar Pradesh, which is a significant region for sugar production in India.

As of 2022, Balrampur Chini Mills operates 10 sugar factories with a combined crushing capacity of approximately 76,500 tons per day. The company's sugar production for the financial year 2021-2022 was around 10.88 million quintals.

BCML has diversified operations beyond sugar manufacturing, engaging in the production of ethanol, power generation, and other by-products from sugarcane. In the fiscal year 2021-2022, the company produced 4.25 million liters of ethanol, contributing significantly to India's renewable energy initiatives.

In terms of financial performance, the company reported a total income of ₹4,224.9 crores for the financial year ending March 2022, a notable increase from ₹3,743.6 crores in the previous year. Its EBITDA for the same period was around ₹764.9 crores, with a net profit of ₹500.7 crores, reflecting a strong growth trajectory.

The share price of Balrampur Chini Mills has shown robust performance over the past few years. As of October 2023, the stock was trading at approximately ₹450 per share, up from around ₹350 in October 2022, indicating a growth of over 28.57% year-on-year.

Balrampur Chini Mills has also been proactive in enhancing its operational capabilities. The company invests heavily in modern technology and infrastructure upgrades to improve efficiency and production capacity, aligning with the increasing demand for sugar and its by-products domestically and internationally.

The company's commitment to sustainability is evident through its initiatives in cogeneration of power, which has a total installed capacity of 145 MW. In the financial year 2021-2022, BCML generated 500 million units of power, reinforcing its position as a responsible corporate entity.

In recent years, Balrampur Chini Mills has focused on expanding its presence in international markets, specifically targeting regions with increasing sugar demand. The company has been involved in various export initiatives, with sugar exports reaching approximately 1.5 million tons in the 2021-2022 season.

BCML is also listed on the National Stock Exchange and the Bombay Stock Exchange, making it accessible for investors. The company's performance metrics have consistently attracted attention from investors, given its strong fundamentals and growth potential in the sugar industry.

A Who Owns Balrampur Chini Mills Limited

Balrampur Chini Mills Limited, an established player in the sugar industry, is primarily owned by the Balrampur Group. The company is publicly traded on the National Stock Exchange of India and the Bombay Stock Exchange.

As of the latest filings, the major shareholders of Balrampur Chini Mills are:

The company’s shareholding pattern reflects a significant presence of institutional investors as well as individual shareholders. The latest data from the September 2023 quarter shows that the public shareholding accounts for approximately 43.75% of the total shares.

Balrampur Chini Mills has also been proactive in updating its corporate governance policies, ensuring that minority shareholders are represented effectively. The ongoing initiatives to improve shareholder communication and transparency solidify the trust with its investors.

The company reported a market capitalization of approximately ₹5,000 crores as of October 2023. In its recent financial report, Balrampur Chini Mills announced total revenues of ₹4,000 crores with a net profit margin of 12%, reflecting a robust financial health in the sugar sector.

In the fiscal year 2022-2023, Balrampur Chini Mills Limited produced approximately 3.5 million tonnes of sugar, marking an increase compared to previous years. The ongoing expansion of sugar production facilities and diversification into ethanol production places the company in a strong position within the market.

In terms of stock performance, Balrampur Chini Mills Limited has shown resilience. Over the past year, its share price has increased by 25%, outperforming many of its peers in the sugar industry.

Balrampur Chini Mills Limited Mission Statement

Balrampur Chini Mills Limited, one of India's largest sugar manufacturing companies, is dedicated to several core mission objectives. As a part of their mission statement, the company emphasizes its commitment to quality, sustainability, and innovation in the sugar production industry. They aim to enhance stakeholder value while contributing positively to society and the environment.

In the financial year 2022-2023, Balrampur Chini Mills reported a revenue of ₹4,598 crore, showcasing a significant increase compared to ₹4,165 crore in the previous fiscal year. The net profit for the same period rose by 44% to reach ₹570 crore, up from ₹396 crore in FY 2021-2022.

The company’s mission statement also reflects a dedication to sustainable practices. In 2023, Balrampur Chini Mills aimed to reduce its carbon footprint by 20% over the next five years. This aligns with their initiatives in renewable energy, where they have made investments exceeding ₹200 crore towards biomass and cogeneration projects.

Balrampur Chini Mills also focuses on innovation and development within the sugar and ethanol sectors. The company has ramped up its production capacity significantly, with a total cane crushing capacity of approximately 76,000 tonnes per day as of 2023.

Furthermore, the company's mission includes community engagement, as reflected in their CSR initiatives. In FY 2022-2023, Balrampur Chini allocated ₹15 crore towards social development programs, focusing on education, health, and rural development.

In summary, Balrampur Chini Mills Limited's mission statement encompasses a balance of economic growth, environmental responsibility, and social commitment, firmly positioning it as a leader in the sugar industry in India.

How Balrampur Chini Mills Limited Works

Balrampur Chini Mills Limited (BCML) is one of the leading sugar manufacturing companies in India. Established in 1975, the company has developed a robust operational framework within the sugar industry. It operates through various business segments, primarily focusing on the production and sale of sugar, ethanol, and power generation.

Operational Structure

BCML operates a total of 10 sugar factories located mainly in Uttar Pradesh, with a combined crushing capacity of over 76,000 tonnes of sugarcane per day. The company has a diversified product portfolio that includes:

• Sugar
• Ethanol
• Co-generation of power
• Molasses and other by-products

The operational cycle typically begins with the procurement of sugarcane during the harvesting season from local farmers. The crushed sugarcane is then processed to produce sugar, with both raw and refined products being made available for domestic and international markets.

Financial Performance

As of the financial year ended March 2023, Balrampur Chini Mills reported the following financial metrics:

For the quarter ended June 2023, BCML reported:

Market Dynamics

As of October 2023, sugar prices in India saw fluctuations, with the average price hovering around INR 36 per kg. The Indian sugar market is influenced by various factors including government policies, global sugar prices, and domestic production levels. BCML benefits from favorable government policies concerning ethanol blending and sugar MSP (Minimum Support Price).

Ethanol Production

Balrampur Chini Mills has positioned itself as a significant player in the ethanol production segment, with an installed capacity of approximately 360 KLPD (kiloliters per day). The company's ethanol revenue for the financial year 2022-2023 was reported at about INR 858 crores, showcasing its strategic diversification into renewable energy sources.

Co-Generation Power

BCML is also focused on co-generation of power, utilizing bagasse from sugarcane to produce electricity. For the financial year 2022-2023, it generated around 210 MUs (Million Units) of power, contributing significantly to the company’s revenue. The power segment has become increasingly relevant with rising energy costs and demand for renewable energy.

In summary, Balrampur Chini Mills Limited operates within a well-defined structure that emphasizes efficiency, diversification, and sustainability, making it a significant player in the Indian sugar market.

How Balrampur Chini Mills Limited Makes Money

Balrampur Chini Mills Limited (BCML) is one of India's leading sugar manufacturing companies, deriving its revenue primarily from the production and sale of sugar. In the fiscal year 2022-2023, BCML reported a revenue of ₹4,174 crore, reflecting a significant **18.9%** increase year-on-year.

The company's earnings are grouped into several key segments:

• Sugar Production
• Power Generation
• Co-generation of Power
• By-products (like Molasses and Ethanol)

In the revenue breakdown for FY 2022-23, sugar sales accounted for approximately **75%** of total revenues, while by-products contributed **15%**. Power generation and co-generation activities made up the remaining **10%**.

For the sugar segment, BCML's production for the 2022-2023 season reached **35.75 lakh tonnes**, supported by high sugarcane yields across its operational regions. The average sale price of sugar was around ₹35,000 per tonne, influenced by domestic demand and international sugar market trends.

Additionally, the company has leveraged ethanol production to boost profitability. In FY 2022-23, BCML produced **1.82 lakh kilolitres** of ethanol, with revenues from ethanol sales reaching approximately ₹920 crore. The pricing of ethanol was around ₹49.6 per litre, driven by rising demand for blending with fuel, in line with government policies promoting cleaner energy alternatives.

BCML has also invested in co-generation plants, resulting in additional revenue streams. The company generated around **90 megawatts** of electricity through co-generation, which is sold to the grid, contributing to its power revenue segment.

In alignment with the Indian government's push for renewable energy, Balrampur Chini Mills aims to enhance its co-generation capacity, targeting a production increase of up to **20%** over the next five years. This strategic move is expected to further diversify revenue sources and mitigate risks tied to fluctuating sugar prices.

Furthermore, the company's profitability is bolstered by efficient cost management, with a focus on reducing production costs. BCML's production cost per tonne of sugar was noted at **₹27,000** in FY 2022-23, providing a competitive edge in pricing strategies and enhancing margin stability.

Overall, Balrampur Chini Mills Limited effectively capitalizes on various segments of the sugar industry and its by-products, continuously adapting to market dynamics to optimize earnings growth.