Birla Corporation has earmarked Rs 2,350 crore to augment its annual cement manufacturing capacity from 7 to 11.5 million tpa by 2013.

Of the total, the company is likely to invest Rs 1,150 crore for brownfield expansion by 2011 and another Rs 1,200 crore for setting up a three-million tpa greenfield plant at Satna in Madhya Pradesh. It has recently been allocated a coal block by the Madhya Pradesh Government.

Currently, the company is holding discussions with lending institutions to secure about Rs 600 crore of debt for its expansion plans. Balance amount is expected to be funded through internal accruals.

The company's brownfield expansion includes setting up a 1.2 million tpa plant along with power generation from waste heat recovery and 35 MW captive power plant at Chanderia in Rajasthan. In addition, the company is expanding the grinding capacity at Durgapur in West Bengal by six lakh tpa and install a 17.5 MW captive power plant, as well as replacing the cement ball mills at Satna and setting up a coal washery and 35 MW captive power plant.

The company is also planning to set up a one million tpa cement plant in Umrangsu in Assam at an investment of Rs 500 crore. The company has been short-listed by the Assam Government and an MoU for the proposed plant is yet to be signed.

Also See:

MP Birla Group plans three hospitals (24-Jun-09)