Birla Corporation, the MP Birla Group company, has reportedly announced its plans to double its cement producing capacity to around 30 million tons per year in the next five years by 2027.

While addressing the company stakeholders at the AGM, Harsh V Lodha, the Chairman of MP Birla Group, stated that the company has an aggressive expansion plan and will venture into markets where it leads among its competitors. This expansion plan reflects the improving cash flow and profitability of the company.

He added that Birla Corp. has devised plans to attain the target of 30 MTPA by 2027. Lodha also said that the details regarding the plans will be announced once they are approved by the board members of the company.

This is a new set target for the Kolkata-based company, which previously stated that it would increase its production capacity to 25 MTPA by 2025. Currently, Birla Corp. has a production capacity of 15.6 mt and is predicted to reach around 20 MTPA by the end of the existing fiscal year, once its greenfield plant of 3.9 MTPA at Nagpur is commissioned.

According to Lodha, new plants are going to be more profitable as well as efficient in comparison to the legacy assets of the company. The plants of Birla Corp.’s subsidiary, RCCPL Pvt. Ltd, the former Reliance Cement Co. Pvt. Ltd, which was taken over in 2016, is among the best in the country judging by operational parameters. The company’s newly appointed Chief Executive Officer and Managing Director stated that it has sufficient limestone reserves that could last for decades at its existing operational scale.

For the record, Birla Corp. Limited is the flagship firm of the MP Birla Group, which has interests in jute goods and cement industries. Currently, the company operates around 10 cement plants across India.

Source credits:

https://www.moneycontrol.com/news/business/birla-corp-plans-to-double-cement-capacity-to-30-million-tons-in-5-years-7524041.html