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Birla Corporation to augment cement manufacturing capacity

Monday, 12 Aug 2019
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Birla Corporation, the flagship company of the MP Birla Group, is looking to augment cement manufacturing capacity by over 60 percent to 25 million tonne from the current 15.5 million tonne in the next four to five years.

The expansion, which will be partly greenfield and partly brownfield, will entail a total investment of around Rs 5,000 crore, to be funded through a mix of debt and equity. The company has already commenced construction of the 3.9 million tpa greenfield project at Mukutban in Maharashtra. It is expected to be complete by FY22. The estimated investment on the project is close to Rs 2,450 crore.

The company has tied up with a consortium of lenders for a 12-year term loan of close to Rs 1,625 crore. The company intends to reach 25 million tonne by 2024-25 and will add another five million tonne thereafter, either through greenfield or acquisition.

Birla Corporation and its subsidiary RCCPL have 10 cement plants spread across the country with an annual installed capacity of 15.5 million tonne. Birla Corporation is also setting up the second production line at Kundanganj in Uttar Pradesh of 1.2 million tonne to augment unit capacity to 3.6 million tonne.

This apart, expansion of the NCCW plant at Chanderia in Rajasthan has also begun. It will add clinkerisation capacity of 4,80,000 tonne which, in turn, can feed the additional clinker needs of the Kundanganj grinding unit.

The company will also look to add another production line at its existing unit at Maihar in Madhya Pradesh. Birla Corporation has been able to ramp up capacity utilisation across its factories to well over 95 percent.

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