The Rise of India’s Bioplastic Industry: Nirani, Balrampur & Reliance Take the Lead
Shashank Verma
CEO@Recinloop | Subject Matter Expert in Recycling, Biodegradable & Compostable Plastics, Coatings, Regenerative Packaging , Circular Economy , Waste Management
India’s Emerging Leadership in Compostable Plastic Raw Materials Manufacturing
The global shift toward sustainability has driven India to take significant strides in the manufacturing of compostable plastic raw materials. With an increasing focus on reducing plastic waste and minimizing dependence on imports, Indian companies such as Nirani Sugars, Balrampur Chini Mills, and Reliance Industries are leading the charge. These developments are crucial in fostering a self-sufficient ecosystem for compostable plastics and aligning with India’s sustainability goals.
India’s Heavy Dependence on Imported Compostable Plastics
For years, Indian manufacturers of compostable plastics have relied heavily on imports, predominantly from China. Any fluctuation in tariffs, supply chain disruptions, or geopolitical tensions significantly impacts the industry. The lack of indigenous raw material production has made compostable plastic manufacturers vulnerable to price variations and limited availability. However, with domestic players stepping forward, this scenario is poised to change.
Pioneering Initiatives in India
Nirani Sugars, one of India’s largest privately-held sugar companies, has entered the bioplastics sector with a significant investment in polylactic acid (PLA) production. The company has signed a Memorandum of Understanding (MoU) with the Government of Karnataka to establish a state-of-the-art PLA manufacturing facility in Bagalkot. With an investment of approximately ?2,000 crores, this project is expected to be developed over the next three to five years and generate 600–800 direct employment opportunities.
The Government of Karnataka has assured its support by facilitating approvals, permissions, and incentives, ensuring a seamless execution of the project. PLA, a biodegradable polymer derived from renewable resources, is widely used in applications such as 3D printing, packaging, medical sutures, and eco-friendly textiles. By leveraging its agricultural and industrial strengths, Karnataka is set to become a key player in India’s green economy.
Vishal Nirani, Director of Nirani Sugars, emphasized the importance of this initiative, stating, “This project is not just an investment in manufacturing but a commitment to Karnataka’s vision for a greener and more self-reliant future.” The plant aims to significantly reduce India’s reliance on imported PLA and accelerate the adoption of sustainable alternatives in various industries.
Balrampur Chini Mills, a leading sugar manufacturer, is making history by constructing India’s first large-scale industrial PLA plant. The company has partnered with global leaders such as Sulzer, Alpine Engineering GmbH, and Jacobs Solutions for technological support.
Sulzer, a Switzerland-based engineering firm, will provide manufacturing technologies for key processes like lactide synthesis and polymerization.
Alpine Engineering GmbH, an Austrian company, will supply expertise in lactic acid fermentation and purification.
Jacobs Solutions, a US-based firm, will handle Engineering, Procurement, and Construction Management (EPCM) services.
The proposed facility, with a capacity of 75,000 tonnes per year, is expected to be operational by mid-2027. The ?2,000 crore investment underscores the company’s commitment to sustainable innovation and environmental responsibility. The integration of the PLA plant with Balrampur Chini Mills’ existing sugar plant in Uttar Pradesh ensures efficient utilization of resources and minimizes waste. This initiative aligns with India’s vision of fostering a circular economy and reducing plastic waste through indigenous manufacturing.
Reliance Industries Limited (RIL), one of India’s largest conglomerates, has also stepped into the bioplastics industry by developing the technology to manufacture poly(butylene adipate-co-terephthalate) (PBAT). PBAT is a biodegradable polymer widely used in flexible packaging, agricultural mulch films, and disposable products.
RIL showcased its PBAT capabilities at the Global Conference on Plastics Recycling and Sustainability (GCPRS) 2024 in Delhi. The company has successfully conducted trials at the pilot stage and is set to commence commercial production soon. The availability of domestically produced PBAT will provide compostable plastic manufacturers with a reliable and cost-effective alternative to imports. By leveraging its extensive expertise in polymer science and manufacturing, RIL is expected to play a transformative role in India’s bioplastics industry.
Regulatory Developments: A Step Towards Market Simplification
One of the critical barriers to the widespread adoption of compostable plastics in India has been the high cost and complexity of obtaining manufacturing licenses. In 2024, during a NITI Aayog meeting, it was recommended that the requirement for individual certification for each manufacturer or marketer be removed. Instead, if a raw material manufacturer possesses a Central Pollution Control Board (CPCB) license, the downstream manufacturer should be allowed to directly produce compostable plastic bags without additional certification costs.
This regulatory change is crucial because testing compostable plastics under IS 17088 standards is an expensive and time-consuming process. Even if Indian companies begin supplying raw materials, manufacturers face significant financial and procedural hurdles in switching from conventional plastics. The NITI Aayog proposal aims to eliminate these bottlenecks, making it easier for manufacturers to transition to compostable plastics and encouraging greater adoption of sustainable materials.
The Road Ahead: A Gamechanger for India’s Bioplastics Industry
The recent developments by Nirani Sugars, Balrampur Chini Mills, and Reliance Industries mark the beginning of a transformative era for India’s bioplastics sector. These initiatives are set to:
As internal demand for compostable plastics continues to rise, the presence of domestic raw material suppliers will drive innovation and industrial growth. The government’s role in streamlining regulations and facilitating investments is equally crucial in ensuring a smooth transition.
In conclusion, the progress made by Nirani Sugars, Balrampur Chini Mills, and Reliance Industries signals the beginning of a new chapter in India’s sustainability journey. By strengthening the local supply chain and reducing dependence on imports, these companies are paving the way for a more resilient and self-sufficient bioplastics industry. As the world moves towards eco-friendly alternatives, India is poised to become a key player in shaping the future of sustainable materials.
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1 周It mixes with non biodegradable to make it biodegradable
Work is its own reward
3 周Good and concise article.. However, the question remains how to segregate thousands of tons of compostable plastics from millions of tons of fossil based packaging material coming out for recycling every year.