Birla Corporation plans 30 mt cement capacity in next five years

30 Sep 2021 CW Team

Birla Corporation is planning to double its cement production capacity to 30 million tonne (mt) per year by 2027.

MP Birla Group Chairman Harsh V Lodha said during his address to the company's shareholders at the AGM on Monday that the company has an aggressive expansion plan and will expand in markets where it has a competitive advantage over its competitors.

Lodha said that details of the plans will be announced once they have been finalised and approved by the company's board.

Birla Corporation's current production capacity is 15.6 mtpa, but it is expected to increase to nearly 20 mtpa by the end of the current fiscal year when its greenfield 3.9 mtpa plant near Nagpur is commissioned.

Lodha said that new plants will be more efficient and profitable than the company's legacy assets. Reliance Cement Company Private Limited (RCCPL), which was acquired in 2016 is a subsidiary of Birla Corporation Limited, and its plants are among the best in India in terms of operating parameters.

The aggressive expansion plan reflects the company's improving profitability and cash flow.

According to Lodha, cement demand is expected to increase, and Birla Corporation plans to expand in markets where it has a competitive advantage.

The newly-appointed Managing Director and Chief Executive Officer of Birla Corporation said that the company has enough limestone reserves to last decades at its current scale of operations.

The MP Birla Group's flagship company, Birla Corporation Limited, has interests in the cement and jute goods industries. It currently owns and operates ten cement plants throughout the country.

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Also read: Indian cement industry to add 80 mt cement capacity through FY24
Also read: Cement manufacturers eye expansion in eastern India

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