Balrampur Chini Mills: Moving into Branded Sugar

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Balrampur Chini Mills was established in 1975 in Calcutta by Vivek's grandfather. Balrampur emerged from the crumbling British India Corporation's sugar mills scattered all over Uttar Pradesh. The Saraogis had just one sugar unit but had interests in coal mining, real estate and tea plantations. The sugar business was losing money. In 1979 when the family business headed for a split, Meenakshi Saraogi's (Meenakshi) husband, Kamal Nayan Saraogi (Kamal) was advised to sell the loss-making Balrampur sugar plant...

With a record production of 201 lakh tonnes and consumption of 184 lakh tonnes in 2002-03, India was the largest producer and consumer of sugar in the world. Due to its politically sensitive nature, sugar was one of the few industries in India that continued to be under the control of the government, which regulated sugar releases, sugarcane procurement and sugarcane pricing...

In a country, where diversification was common, Balrampur had decided to stick to its core competency. Over the years, Balrampur had scaled up its operations through both capacity expansion and acquisition.

Balrampur's timely supplies and consistent good quality helped it command a premium in the market and serve large institutional consumers like Pepsi, Coke, Parle and some pharmaceutical companies. In recent times, the company had been attempting to reduce risk by focusing on by-products...

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