Embarking on its next phase of growth, Birla Corporation, the flagship of the MP Birla Group, along with its subsidiary RCCPL, has announced an investment of Rs 43.35 billion to scale up production capacity. This will be achieved by setting up three new grinding units and expanding an existing integrated plant.

The company reported a 33 per cent year-on-year rise in consolidated net profit to Rs 2.57 billion for the fourth quarter of the last financial year, driven by higher demand and improved pricing. Revenue from operations increased by 6 per cent year-on-year to Rs 28.15 billion, up from Rs 26.54 billion in the corresponding quarter. Operating profit margin for the cement division stood at 20 per cent, up from 18.6 per cent in the previous year.

In a filing to the stock exchange, Birla Corporation announced that its board has approved capital expenditure to establish a greenfield grinding unit in Gaya, Bihar, with a capacity of 2.8 million tonnes per annum (MTPA). The project, estimated at Rs 8.6 billion, is expected to be completed in phases by the fourth quarter of FY29.

Meanwhile, RCCPL, the company’s wholly owned subsidiary, will undertake capital expenditure of Rs 34.75 billion to construct two greenfield grinding units with a combined capacity of 3.4 MTPA in Uttar Pradesh, and a 3.7 MTPA brownfield clinker facility at Maihar in Madhya Pradesh.

“With earlier expansions at Mukutban in Maharashtra and Chanderia in Rajasthan now stabilised, and strong positioning in Central India, we are entering the next growth chapter,” the company said. These upcoming projects will raise total production capacity from 20 million tonnes to 27.6 million tonnes by FY29.

“Our capacity utilisation in Central and Eastern India exceeds 100 per cent,” said Harsh V Lodha, Chairman of Birla Corporation. “We anticipate cement demand to grow at a CAGR of 6 to 7 per cent over the next few years. These additions will enhance profitability and reduce lead distances, with grinding units strategically located near consumption centres.”

Cement sales volume rose by 8 per cent year-on-year in Q4 FY25 to 5.2 million tonnes. For the full fiscal year, sales reached 18.1 million tonnes, compared to 17.6 million tonnes in FY24.