Balrampur Chini Mills Ltd (NSE: BALRAMCHIN) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Anoop Poojari — Investor Relations
Vivek Saraogi — Chairman and Managing Director
Avantika Saraogi — Executive Director
Pramod Patwari — Chief Financial Officer
Analysts:
Shailesh Kanani — Analyst
Sanjay Manyal — Analyst
Nitin Awasthi — Analyst
Dhvaneet Savla — Analyst
Disha — Analyst
Krishan Parwani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Balrampur Chini Mills Limited’s Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Anuk Pujari from CDR India. Thank you, and over to you. Thank you.
Anoop Poojari — Investor Relations
Thank you. Good afternoon, everyone, and thank you for joining us on Balampur Chini Q4 and FY ’25 results conference Call. We have with us today Mr Vivek, Chairman and Managing Director; Ms Avintika, Executive Director; and Mr Pramod Patwari, Chief Financial Officer of the company. We would like to begin the call with brief opening remarks from the management, following which we’ll have the forum open for a question-and-answer session. Before we start, I would like to point out that some statements made in today’s call may be forward-looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier. I would now like to invite Mr to make his opening remarks.
Vivek Saraogi — Chairman and Managing Director
Thank you,, and good afternoon, and thank you for joining us on our Q4 and FY ’25 earnings conference call, I will initiate the call with an update on the current developments in the sugar sector followed by our company’s key highlights for the period under review. According to the latest estimates, India’s production for season ’24 ’25 is projected at 26 million on a net basis after diversion, accounting for a diversion of 3.5 million, which means gross 29.5, 3.5 diversion, 26 net production.
This marks a decline from 32 million net in the previous year, primarily due to reduced gain availability impacted by unfavorable weather conditions across key producing states. In UP production is estimated at 9.28 million tonnes, down from 10.35 million tons in the previous season to this net on the net basis. The state faced several headwinds in the first-half of the season, red rock disease in ratoon crop, increased diversion to Khansari and lower content due to the antic climatic patterns.
Encouragingly, the second-half saw an improvement in cane availability supported by better yields. Meanwhile, Karnata produced around 8.1 million ton and 4.2 million tonnes, again on a net basis respectively. On the demand-side, India’s domestic consumption is estimated at approximately 28 million tonnes. Despite the reduced net availability post diversion, domestic requirements are expected to be comfortably met, aided by an opening stock of 8 million. Consequently, the closing stock of the current year that is stock as on 125 is expected to be around INR5.2 million.
The tight inventory position is anticipated to support farm sugar prices, critical for enabling timely payment to the farmer, ensuring liquidity amidst — particularly this former sugar price has been helpful amidst no price revision for juice and B-heavy ethanol. Government’s 1 million export quota has also contributed to firming of sugar price in our for our company around INR41 rupees a kg that the current prevailing price. However, for ’24, ’25 ethanol year while diversion of sugar, cane, juice and be heavy. So the restriction on quantum was lifted, but there was no price increase given.
This marks a shift from the government’s prior practice of aligning ethanol prices with changes in FRP, making sugar diversion for ethanol an unattractive. If this persists, it could undermine the government E30 blending program by 2030. On the business front, Balrampur concluded the fiscal year 2025 on a stable note. The Sugar segment delivered a strong performance this quarter, driven by healthy margin. However, the distillery segment, as you know, was impacted by government’s decision not to revise the price for juice, ethanol and B-heavy ethanol, despite revision in FRP.
Our proactive approach to varietal rebalancing, farm engagement helped increase throughput and achieve a comparatively better recovery to peers. In fact, our crashing was down only 1.4% year-on-year and gross recovery dropped by 0.46% which is the lowest decline amongst factories in East UP in-line with our commitment to sustainable and value-added diversification, we are making strong progress on our PLA project, which forms an integral part of our broader strategy to build a future-ready and fully-integrated business model.
The 80,000 ton capacity of our PLA plant is on-track for commissioning by Q3 FY ’27 with a capex of 2850 or net figure is 1750 accounting for government subsidy of 50%. Supported by state’s pioneering bioplastic policy, the project benefits from a robust incentive framework, further strengthening its long-term viability. The facility will produce 100% bio-based PLA using sugar as feedstock and is expected to generate around INR2,000 crore annual revenue. And hopefully, since it’s the first time we are entering into this business, that’s why the word hopefully EBITDA margin of 35%.
Powered entirely by renewable energy, the plant will not only drive sustainability, but also — but will also create significant employment opportunity in manufacturing and research. By leveraging our agri-based value chain, the project positions us to meet India’s rising demand for green automotive and reinforces our role in advancing nation’s circular economy and climate goals over the years, our integrated operations have consistently adapted to evolving industry dynamics.
The upcoming PLA project is a natural evolution of our strategy to extract maximum value from each stick of cane while advancing our green transition. With growing regulatory support and consumer demand for bio-based alternatives, we are confident in our ability to sell the product and deliver long-term sustainable growth. Looking-forward, our focus remains on value maximization, sustainability and disciplined capital allocation. Our diversified and future-ready business model position — positions us to deliver long-term growth and deliver value to our shareholders. This brings me to-end of our discussion., now I request to give an update on the team.
Avantika Saraogi — Executive Director
Good afternoon, everybody. Thank you for joining the call. Thank you for having me here. So an update on the is you know that I just want to look-back a little bit on the performance and then talk about the future. So while the UP claim has declined to the tune of maybe 2.5% to 3% on average, but Rampur’s cane availability has only reduced by 1.74%.
This is testament to all our actions that we have done and we continue to do in terms of disease insect test, you know containment, varietal balance, the right variety in the right place, the right thing for the right farmer, including soil dive, including up land low land, including water logging, everything. So this is something that is now part of DNA and of course, tattoo and management as well. So now we are only — I think we should be outperforming industry benchmarks, that’s all I can say.
Also on the recovery front, I want to highlight that while UP has had a 0.62 odd percent drop, while Rampur has only had a 0.46, this is on a gross sugar available in the sugar cane. It’s called pole and cane, which is only what we can measure today because of the ethanol diversion. So while our drop difference is only 0.15% as compared to UP, but if we see it in absolute terms, our recovery is 0.7% better than UP average. Again testament to our cane quality and our cane quantity as well.
Looking-forward, our varietal balance is, of course changing. Now we only have as also forecasted previously. Now we have only 6% of 0238, which has the red rot know, which is affected by Red Rot. All the other varieties are very healthy and all the new varieties which are also put into the stream are clamatizing well and now hopefully, we should see some yield enhancement if weather is on our side definitely. And even if weather is not on our side, we should see the lowest drop. This is — this is sort of what we work with. So we are open to questions and thank you very much.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press RN1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles thank you. We’ll take our first question from the line of Shailesh Kanani from Centrum Broking. Please go-ahead.
Shailesh Kanani
Good afternoon, everyone. Congrats, sir, on good set of numbers given the challenges we have faced during the season. Sir, my first question is with respect to sugar volumes. How do we see that shaping up for the year FY ’26, given that inventory levels are higher in-spite of a 20% increase in the sugar sacrifice for the year?
Pramod Patwari
So Salesh, as of 31st of March, we are holding around 7.1 lakh tonnes of sugar. And in the month of April, we also produced something. If you take that into account, it will be around 7.5 million tonnes. This entire inventory would be liquidated within November itself. Thereafter, depending upon the quota allocation, we will have to assume something. But if you see our last two years data, we have been in the reason of selling around 9.4 lakh tonnes of sugar for an annual basis.
Shailesh Kanani
Sir, just to add, the reason I was asking that the 9.4 average what we had, we’d have a little bit of a lower side when the inventory was on the lower side. This time around, we have little higher inventories. House of wondering, if we can see an uptick on the volume that way.
Pramod Patwari
So maybe 10 lakh tons is what we can — but this is a guess as of now.
Shailesh Kanani
Yeah. So that is what I was thinking, okay.
Vivek Saraogi
We are hoping that little higher-volume. You hoping for a little higher-volume for sure. Yes.
Shailesh Kanani
Yeah, absolutely. Sir, my second question was with respect to sugar prices. We have seen a marginal uptick for FY ’25, broadly in-line with our increasing cost of production. And FY ’26 looks to have started on a promising note with already sugar prices above FY ’27 average by around INR2 per kc. How do we foresee this average playing out for FY ’26.
Vivek Saraogi
So right now, as we have informed you, our price is around INR41 and Pramod, I think this is what has been prevailing in this quarter approximately, around this range. So I would say that this should be — this price level should definitely maintain and the rest would depend on the government’s policy for next year. So if at all, what can see a marginal uptick in the coming months?
Shailesh Kanani
That’s helpful. That’s helpful. Sir, one data point from the PPT. There was a slight year-on-year dip in the transfer pricing of syrup, whereas sugar prices in general has gone up. So what are the rationale behind that, sir?
Pramod Patwari
Yes. So last year, the production was restricted on account of that, the conversion cost was on a higher side. The loaded conversion cost on the setup quantity was on a higher side.
Shailesh Kanani
Okay, fair enough. Fair enough. Can I squeeze in one more question?
Vivek Saraogi
Why not? Yeah.
Shailesh Kanani
Thanks, sir. Sir, this question is with respect to ma’am. Ma’am, we have kind of earlier indicated about increasing our catchment area as well, right? And in our earlier commentary, we have also said that Eastern UP has better scope in terms of increasing the cash material vis-a-vis, say, other parts like vested UP. How do we — how are we placed over there? If you can throw some light on that aspect of increasing the?
Vivek Saraogi
So I’ll take a try and take this question, then you can comment. So if you’ve seen the Honorable Chief Minister’s statement of late, he has said that you would reallocate area from defaulters to good paymasters. So one definitely remains hopeful on that front and those areas itself have a lot of scope to develop because they have been belonging to not-so-good paymasters and therefore the farmer does not develop cane there. On our cane area, we are working hard and Amantika restaurant queue.
Avantika Saraogi
So we — our ultimate goal is cane availability, right? How much can I crush? So that is not always dependent on areas we have — we have seen. We have actually seen that it depends more on yield than on area in the past three years, at least I can say that pretty confidently. So even when our area was increasing, the cane was not increasing. But as the area stays a bit stagnant, the yields start to also improve a little bit. So it’s not — it’s a sort of balancing act app and at the end-of-the day our cane availability should remain strong.
Vivek Saraogi
If I’m too hazard a guess and please mark my language it says hazard a guess next season probably some uptick and thereafter a very decent uptick.
Shailesh Kanani
Yeah, that is what actually I wanted to understand on the directional price. Thanks a lot. Yes, sir yeah, yeah. Thank you. That’s what. Yeah. Thanks a lot. Thanks a lot. That’s very helpful. And best of luck, sir. Thank you.
Operator
Thank you. We’ll take our next question from the line of Sanjay Manyal from DAM Capital. Please go-ahead.
Sanjay Manyal
Hi, sir. I have few questions on ethanol part. Given the fact that there is no increase in the ethanol prices, is it — is it safe to say that now the industry-wise capacities are enough to sort of meet 20% blending and government was not very keen, it seems that they will take this 20% to further up because there was one statement by you know oil and gas minister that you know there is no-no such plan as of now so you think that now government is comfortable about the fact that there is enough capacity to meet 20% and they will not give any price hike or they are not sort of keeping the — keeping the formula of FRP linkage with ethanol price?
Vivek Saraogi
Okay. I’ll answer this in two-parts. I don’t think that message is in that manner, which you said. I think there is a statement of saying E30 by 2030. I mentioned that in my opening remarks. So let’s understand what happened this year. To the best of our knowledge, the OMCs and the petroleum ministry got a bit stingy and they wanted to maximize profits. The impact of that will be very severely felt in future if they do not repair the mistake. So even now if I go back to mathematics for the oil company, the ethanol based the maze based ethanol is being bought at 71.86 and some of the juice ethanol 65, 61, 65 61. So there is no basis of paying INR6 rupees higher for maize ethanol. And our — there was a misnomer that the sugar cane is a bit bigger water than. Now that has ended — that debate has conclusively ended in Parliament and with the interministerial committee study. So we are back on even keel or we are in an advantage against maize on the concept of cultivation,, you can also get. Secondly, this hurt and this pain point has now, to the best of our knowledge been understood by the government. So one cannot repair the past, but I think the future remains linkage-backed to FRP, but too early. But one is definitely hopeful.
Avantika Saraogi
If we could just compare we based feedstocks for anything, whether it is for ethanol or for SAP or for PLA for that matter, sugarcane remains to be the most environmentally efficient crop, whether it is land-use, whether it is water use, whether it is carbon footprint or whether it is even remuneration on a long-term basis to the farmer itself from one same piece of land year-on-year. So there is no denying that maybe people might sort of try to move away, but ultimately they have to come back because this logic is infallible.
Vivek Saraogi
So I would say that let them — and I think government has understood this concept, the display of the understanding should be evident by next year or when the ethanol prices fixed?
Sanjay Manyal
Sure. Sure, sir. In a similar context, you mentioned about the mace ethanol price at INR71 rupees. So how is now economics given the fact that mace prices have also come down and probably the enough availability of rice. So what is — how are the margins in grain ethanol and what are our plans? Because I think we still have a fungible capacity to the tune of INR10 crore or maybe we’ll do only five or six, but what is our plan and what are the margins in the grain ethanol?
Pramod Patwari
Yeah. Sanjay, we — our intention was always to utilize this match capacity or the rice capacity in the off-season. And it — the capacity is not more than six debt. If we are full — full availability of molasses or BAV molasses or juice is available. So that I would say probably because you need some shutdown time. INR5 to 6 crores with that.
Sanjay Manyal
Correct and what?
Vivek Saraogi
Yeah. So this is a balancing — maize is equal to balancing factor post juice in Mezapur. We have one single capacity. Two, maize price has not reduced, it remains stagnant. What I did is give a comparative between what the OMC buys maize ethanol at and juice ethanol. That is what I did. Just to sort of drill down the logic that if one is looking at profitability for OMC, even on that front, now we stand-out very conclusively whatever we stand-out conclusively. Any projection to meet any demand E30 by 2030, not possible without this INR40,000 crore invested, we have highlighted that surplus sugar diversion, one could play games wrong word. One could not do this when there is no excess, but when there is excess, I think again that will work-in our favor. So all the factors are pointing towards back to FRP linkage from next year.
Sanjay Manyal
Okay. Okay, understood. And sir, if you can just quantify, is it possible to quantify grain ethanol margin means either from the maize or a broken rice?
Vivek Saraogi
So we don’t do broken rice because maize is better from the margin.
Pramod Patwari
And Sanjay, it will vary on a company-to-company basis. Our intent is to utilize our capacity.
Vivek Saraogi
This year raw-material has been better available and lower the money, we will definitely make some money.
Pramod Patwari
But it cannot be compared with a person who is in-full year match capacity, who’s utilizing this capacity on a full-year basis?
Vivek Saraogi
But don’t I would differ a bit, but we have our own energy source which they don’t. So we are far more efficient there right.
Sanjay Manyal
Perfect. So just one more question on the recovery part. I think — so is it that entire industry, specifically in UP is witnessing this lower recovery because they are now shifting from CO0 to 3A to newer varieties. So safe to assume that we are nowhere near CO0 neither in terms of sugarcane yield or recovery.
Avantika Saraogi
No, no, no. I think this is not the right way to look at it. In my opinion, it’s a sort of a temporary phase when there is a shift happening as you know or maybe you don’t know, but a clamatization of any new variety in any new place takes a little bit of longer time. There is no single variety released by the Institute until and unless it is not performing in terms of yield and recovery as much as 2, 38. That is the new benchmark.
So in terms of potential, they all can be — they all can have that thing. But if I remind you, even for, it took us about five to six years to get everything from 2, 38, which we started to get. I think it was back-in 2019 or something like that. So the thing is that it takes some time. The sad part about sugar is that it’s just — it’s a one-year crop, right? So everything takes longer to come to fruition. But this is not the right thought process at all. The future looks very good because the research and the varieties which are coming out actually have very good potential and that took a more varied circumstances as well.
Vivek Saraogi
So if I may just add to that, if you see two of our plants in District, they almost had last year’s recovery. So we suffered not because of variety. We suffered because of severe rains in October.
Avantika Saraogi
And also agro-climatic conditions, sometimes it rains too much like I think we’ve mentioned this in the past, it’s that how it reads and when it rains. So last two years in, which I would like to give a good news right now is that until June from October until June, we did not see a drop of rain last-time. This year already in May, it has rain time also. April, May combined, it has rain three days.
Vivek Saraogi
It looks better than last year crop condition if it does not flood in September, October, we should see much better recovery.
Avantika Saraogi
So it’s more agro-climatic, otherwise the full state cannot just go down like this.
Sanjay Manyal
Okay. Okay. Understood. That was pretty clear. Thank you. Thank you very much for the answers.
Operator
Thank you. We’ll take our next question from the line of Nitin Avasti from InCred. Please go-ahead.
Nitin Awasthi
Hello, sir. Would you like to know a few things on the PLA front. We have given, of course, an estimation on the EBITDA that we are looking at, we’re looking at we have also given an estimated timeline and an estimated top-line. Could you give us how much is the estimated gain which will be required to for this capacity to run, which is an optimal capacity of 75,000 tonnes per annum.
Avantika Saraogi
Actually, it’s not sugar cane which is the main feedstock, it’s sugar. So you have to get linked to that. It will get linked to, but it depends on recovery organization, right? So sugar is basically we have said around 1.7 times of 80,000 tonnes, which is about 1.2 land 5 lakh tonnes.
Pramod Patwari
1.25 lakh tonnes of sugar gets diverted, which is approximately promote — if you go on a gross basis about this year we diverted 2 lakh tons of sugar.
Vivek Saraogi
Okay. So you can — I think I like what said. If this year we diverted 2 lakh tonnes of sugar and assume we were doing this PLA business this year, we had diverted 3.25 lakh tons of sug. Extra diversion of 1.25 lakh tonnes of sugar. Yeah. So you can look at it as how much less sugar in circulation rather than sugar key? That’s the easier way.
Nitin Awasthi
Understood, because of course, then you will also add the molasses, which can be used for the ethanol plant. Okay. Got it. The next thing I wanted to ask is, I think time around before the season starts, we are — we are seeing the lowest spreads between FRP and SAP. Has that caused any agitation in the state? Or is it under new normal that the spreads are going to reduce in the future.
Vivek Saraogi
So I from where-is the word agitation coming? I have not heard of it.
Nitin Awasthi
No, so basically the FRP, the gap between FRP and SAP used to be quite substantial compared to what it is given the new FRP announcement which has happened year.
Vivek Saraogi
Yeah. So I mean one. Yeah. So you can’t plot trends like this, but our Honorable Chief Minister is an extremely practical person, but one does not believe FR SAP to remain constant. So you cannot derive a mathematical relationship if that’s what you’re looking at. But yes, sugar cane price in UP is declared with a far more practical mindset than pre our Honderable CM.
Nitin Awasthi
Understood. Understood, sir. Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. We’ll take our next question from the line of Sawla from Sawala Family Office. Please go-ahead.
Dhvaneet Savla
Hello. Am I audible?
Vivek Saraogi
Yes.
Dhvaneet Savla
So my question is, I have two questions. First is, since the FRP revision and since had explained wonderfully on the difference between the maze and the ethanol coming from maze and from sugar. So is it my assumption fair that the upward revision should be somewhere in the range of what the current prices are on maize based ethanol is or are we looking at something higher? And my second question is with regards to what are the precautions which we are taking that since has affected entire Eastern UP or as far as I know. So what kind of precautions are we taking that like this kind of thing, it should have lesser impact going ahead.
Vivek Saraogi
So two-parts to — two questions. One is FRP linkage will have nothing to do with maize price. That is just the ability to raise ethanol price looking at two sources of ethanol was my communication. And ESGP has a minimum red road in the state. Minimum. Yes. And for us if I’m think how much of do we have? Yeah, only 6%. 6%. So that’s it.
Avantika Saraogi
That’s the peak of red rod, which we can easily monitor and almost baby. So we don’t — red rod is a thing of the past. For us for.
Dhvaneet Savla
Okay, okay. So my question on the FIB was not based on the FRP, my — was like the price revision, which if you are looking at anything, it should be above what the maize-based ethanol is, right?
Vivek Saraogi
That’s what works. No, right. So that is what logic demands. You are totally correct, that is what logic demands. What will happen is, sorry, believe. Yeah. So that is what logic demands. That is what past precedent demands. I’m not sure is going to go up that fast that soon, but yes, at least to the extent of FRP raise this year, one is definitely hopeful.
Dhvaneet Savla
So somewhere in the range of 10%.
Vivek Saraogi
You know, I’m not fixing the too early, but yes, positively inclined towards the race to FRP levels. So FRP percentage increased levels.
Dhvaneet Savla
All right. Thank you very much. Thank you. You.
Operator
We’ll take our next question from the line of Disha from Sanko Capital Fund. Please go-ahead.
Disha
Hello. Yes, please. Yeah. Hi, sir. Good afternoon, sir. Sir, my question is, what is the reason for lower sales of ethanol for current-season?
Vivek Saraogi
Sales volume, lower sales volume or ethanol? Sorry,, please.
Disha
Yeah. So what is the reason for lower sales volume in ethanol during this — I’m sure you are aware of the fact that last year there was a restriction on production of ethanol out of juice and BAV as a result of which our capacities were underutilized in FY ’25.
Pramod Patwari
Ethanol year runs November to October. Initial part of the year, we were able to run our distillery on juice and B, thereafter it was restricted.
Disha
Okay, okay. And what are the economies to decide to run the ethanol on sea heavy basis and what is the margin, if you can just advise on margin percentage on or how do we decide?
Pramod Patwari
This is clearly stated in our presentation in a very detailed manner and every year’s planning depends. Lots of availability of sugar gain, what is the price, what is the potential export price, what is the potential return.
Disha
Okay, okay, okay, okay, sir. And what is the quantum of cane crush we are planning for FY ’26? What is the quantum of cane crush we are planning for next year, next season?
Vivek Saraogi
So we don’t plan for cane prices on availability of cane. Too early. I did indicate cane that there might be a marginal uptick beyond which there is no guess one candidate today.
Disha
Okay. Okay. Okay, sir. Thank you. Thank you.
Operator
We’ll take our next question from the line of Krishan Parwani from JM Financial. Please go-ahead.
Krishan Parwani
Yes, hi. Hi, sir. Thank you. Hi, pleasure. Yeah. So sir, just on the PLA front, because I think that’s where our intention is to go in the future. So given you have given an estimated top-line of INR2,000 odd crores, I believe the realization comes out to about $2.5 to $3 a KG. So just wanted to understand if you expect the PLA prices to sustain at this current levels?.
Avantika Saraogi
So that’s a good question actually. It’s hard to sort of predict 1.5 years out what the prices will be, but a $2.5 actually comes to $2.5 only on capacity. But you know this is of course going to depend on the market forces and where we land and historically, it’s even gone to $4 you know so what is to say it can’t go to four. So the point is that it comes to $2.5 is not a bad assumption in my opinion but that is what the 80,000 into 250 so that is what we try to predict but you know, having said that it’s not completely in my control.
Vivek Saraogi
But yes, one is working towards various ideas. The government of UP has given a brilliant bioplastic policy. With the center, our agenda is to get the correct mandate in-place that would drive demand and therefore the price at these levels is not unreasonable to us to estimate.
Krishan Parwani
Yeah, yeah, fair point. I think the prices in China until about December ’23 were in the range of $3 to $4. So at 2.5 is a — it seems like a more realistic assumption, which is fair. Secondly, just continuing on that bit because I think you mentioned that also government support. We know that already. So just wanted to understand the kind of geographical volume split that you expect of your overall volume, so let’s say, of 80,000 tons, how much do you expect domestically and the exports?
Avantika Saraogi
So the goal is, of course, all domestic because if you’re trying to go green, it hardly makes sense to sort of export it directly. Having said that, the export market does have a demand, but we would not probably like to export directly without one-step of at least value addition of a compounding or a converting done within the country. So while it might ultimately land up in a different country, we would like to probably sell domestically because anyways a lot of compounding and converting for the world, it does happen in India. In fact, I think India is one of the largest film producers in the world with plastic PP and pet and things like that.
Krishan Parwani
Okay. So yeah, I think probably NatureWorks tried with the BOPET and BOPP in the beginning of 2000s. So — and then it requires lower modification. So probably you are hinting towards that. Okay, got it.
Avantika Saraogi
I mean that’s one of the applications that we are definitely working on. We are working on at least 10. So this is just one of those. Yeah, got it. I mean, yeah, it could be disposable tableware or excluded blisters, etc. Yeah, even bottles, even bottles, even bottle extires, even fibers, even I mean there is no end honestly. Yes, yes. Yes, yes, I’m, I’m aware. And if I may yeah, please, sir.
Yeah, please continue, continue. So just a continuation of follow-up, if I may. So this would our PLA, PLA you know required USFDA certification for food grade products or how are we looking at it? No, no, no it’s not required for food grade. Food grade certification is required for food grade like FSSAI and things like that in our country. Post that, USFDA might be required for the compounder or the converter who is then finally making the product. For us, the food grade for us impact the compostability and FSACI or approvals are already well underway.
So it doesn’t affect us directly those things. I also wanted to put in an interesting metrics since you’re talking about applications. So India’s consumption of straws alone is 100,000 tons of resin. And you know PLA straws have been approved by BIS and this is a very big sort of win, I would say, as of last month or so I think and it should be soon. And this is sort of a — I just want to show that our volume is only 80,000 tons. India, one single application also if we capitalize on, the market is 100,000 tons large.
Vivek Saraogi
So you know we — I’m not too stressed on where the P&A will go per se. And one more thing, Krish is, we are targeting applications where the impact on the final price of the product will not hurt. So let’s say it’s a bottle for a cap, sorry, a cap for a bottle that’s going to go into sort of negligible territory, it’s not going to hurt. So we are targeting those applications where the consumer will not feel anything, plus there would be that compostable bioplastic in play.
Krishan Parwani
Got it, got it, sir.
Vivek Saraogi
Sorry, complete yourself.
Krishan Parwani
No, no, please, please, sir. Go-ahead, yes.
Vivek Saraogi
O we also remind everyone that you know the first policy of Gujarat allowed solar to be sold at INR15 per unit because even capital cost was INR12 crores, PLF, 18%, 20%. We set it up, so I know it. Thereafter technology involved cost of production with scale came down and things came back to even keel and today we know the price of solar. So we are not looking to remain just dependent on support all-the-time. The initial support for evolving the technology size, et-cetera, we hope to run on our own with no crutches.
Krishan Parwani
Okay, sir. Thank you, Vivekji. Thank you,, for patiently answering my questions. Wish you all the way.
Vivek Saraogi
Yeah, and we appreciate your insight into the whole PLA business.
Krishan Parwani
Thank you, sir. Thank you, sir. Means a lot. Thank you.
Operator
Thank you. We’ll take our next question from the line of Shailesh Kanani from Centrum Broking. Please go-ahead. Thanks for the follow-up, sir.
Shailesh Kanani
Just a couple of data keeping. In general, what are we seeing in terms of ethanol volumes for the FY ’26? And second, ma’am said that our dependence on 0, 238 is 6%. I believe that was somewhere in the range of 25-odd percent. So it is substantially right. I have heard it substantially down. So I have heard it right, right, of that number?
Vivek Saraogi
Avantika, he is asking.
Avantika Saraogi
Last year, last year we crushed about 12%. This year we will crush half of that. The recoveries on the. So we do mid-season analysis on a sort of weekly basis on variety performance. So 238 recovery was not great is the point that even the healthy 238 recovery was not as good as it used to be, it was okay, but other that is also performing that well. So I think the 28 question for Barampur as a company should not be asked.
Vivek Saraogi
So we are rather insulated on and we look-forward to a good you know cane crashing era in years to come whether not and on the ethanol volume front it will depend upon what kind of price increase we see for you. You’ll see our mathematics now, then only we can say. So assume we have good sugar price and you have good export price, we have as a company enabled all flexibility in all our units by making investment. So Mezapur can also run at maybe BAV, no problem. CAV, no problem. So we have that fungibility created. Our decision to the best economic sort of advantage we will come to, which gives us maximum benefit.
Shailesh Kanani
Fair enough, sir. Thanks a lot. That was helpful. Thank you.
Vivek Saraogi
Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question, please press RN on your phone now. As there are no further questions, I now hand the conference over to management for closing comments. Over to you, sir. Thank you.
Vivek Saraogi
Thank you very much and we hope we’ve answered your questions, always ready to answer more. Thank you. Thank you. Thank you everyone. Thank you, members of the management team. Thank you, everyone. Thank you, investors.
Operator
Yeah. Thank you, sir. On behalf of Balrampur, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.