The Aditya Birla Group is planning to invest Rs 7,000 crore to expand its cement capacity to maintain its leadership in the cement industry in India. The final decision on the expansion is likely to be taken within two months.

The group plans to set up three greenfield facilities by 2014. These facilities are likely to come up in Chhattisgarh, Andhra Pradesh and Tamil Nadu. Construction work for these facilities is likely to commence in a year. The orders for supply of equipment are likely to be placed by June 2010.

Post expansion, the group's cement capacity is likely to go up from existing 48.8 to around 62 million tpa. The expansion is to be funded through a mix of internal accruals and debt.

The group is currently in the midst of restructuring its cement business by divesting the cement operations of Grasim, which also viscose staple fibre, into an intermediate firm called Samruddhi Cement, which will eventually be merged with UltraTech Cement. The restructuring plan is likely to be completed by June 2010.