Balrampur Chini slides after accident in distillery unit

Balrampur Chini Mills declined 1.15% to Rs 184.40 after the company informed about an explosion at its distillery unit in Balrampur, Uttar Pradesh.

Balrampur Chini Mills informed after market hours on Monday (20 January) that an explosion occurred in a Co2 tanker at incineration plant at the distillery unit on 16 January 2020. The accident damaged the pipelines/pumps/some electrical and mechanical installations of two incineration boilers. There has been no loss or injury to human life whatsoever.

The company is in the process of ascertaining the loss and intimate the same to the insurance company. It is taking adequate steps to ensure re-functioning of the full capacity of the said distillery unit at the earliest, of which 100 KLPD is already functioning from Monday and the remaining 60 KLPD capacity is expected to be functional in a phased manner in another 7 to 10 days. The said accident would not cause any production loss to the company on an annual basis.

On 13 January 2020, Balrampur Chini Mills said it commissioned a new distillery on 12 January 2020, at its Gularia unit in Uttar Pradesh. The new distillery has a capacity of 160 KLPD (kilolitres per day). With this, the total distillation capacity of the firm now stands at 520 KLPD.

In the past three month, the Balrampur Chini Mills stock jumped 20% to its current market price of Rs 184.4.

Balrampur Chini Mills' consolidated net profit rose 7.9% to Rs 99.80 crore on 15.6% decline in net sales to Rs 856.97 crore in Q2 September 2019 over Q2 September 2018.

Balrampur Chini Mills is an integrated sugar manufacturing company. The firm is engaged in the manufacturing of sugar, ethanol and power. The company's segments include sugar, distillery, co-generation and others.

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