BCML was founded by Saraogi family (the Sponsors) in 1975 and is a publicly listed company. The Sponsors have 32% shareholding in the company, Financial Institutions hold 45% and the balance 20% is held by the public.

The project has an estimated cost of $190 million. The proposed IFC Investment is a $40 million A-loan for IFC’s own account.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

The company is headquartered in Kolkatta and has 10 plants in the state of UP. The two greenfield plants will be in rural areas of Gularia and Kumbhi, both in the District of Lakhimpur – Kheri in UP. The expansion project is at the company’s existing mill in the rural area of Rauzagaon in the District of Barabanki in UP.

The project is expected to have the following development impacts: - Supporting a large number of small farmers through purchasing raw materials; - Reducing poverty in one of the poorest regions in India; - Contributing to rural development by boosting local economy and community outreach; - Enhancing the productivity and competitiveness of the private sector in rural areas; and - Creating new employment within the company and along the supply chain; - Supply electricity to the area in shortage of power supply through cogeneration using bagasse as a source of renewable energy.

IFC’s role includes: - supporting an existing client; - providing long-term debt not easily available in the local market; - guiding the company in implementing an Environmental and Social Management system to improve its environmental and social performance and enhancing its long-term sustainability.

This is a category B project according to IFC''s environmental and social review procedure. The review of this project consisted of appraising technical, environmental and social information submitted by the project company. The appraisal team interviewed the site operations managers including managers with responsibility for management of EHS aspects. Further, the appraisal included sites visits to the company’s existing plants at Balrampur, Haidergarh, Rauzagaon and project sites at Kumbhi and Guleria in the state of Uttar Pradesh, India. The following potential environment, health and safety and social aspect of the project were analyzed:

- Social and Environment assessment and environmental, social, and health and safety management systems; Labor and working conditions;
- Pollution prevention and abatement;
- Community health, safety and security; and
- Land acquisition and compensation.

The company has presented plans to address project related social and environmental impacts; and to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the host country laws and regulations and IFC’s social and environment policies and performance standards and the environmental, health and safety guidelines. A discussion on the company’s plans to mitigate/minimize identified social and environmental impacts has been provided in the Environmental and Social Review Summary (ESRS) and an Environmental and Social Action Plan (ESAP).