Kolkata: Birla Corporation Limited (MP Birla Group) will increase its annual cement production capacity to 30 million tons (mt) by 2027, said Shri Harsh V Lodha, Chairman of the MP Birla Group, at the annual general meeting of the Company here today. This is a new target set for the company which had earlier said it would raise its production capacity to 25 mt by 2025.
Birla Corporation Limited’s current production capacity is 15.6 mt, which will go up to almost 20 mt by the end of the current fiscal year, when its greenfield 3.9 mt plant at Mukutban, near Nagpur, is commissioned. “Plans are afoot to reach a target of 30 mt by 2027,” Lodha told shareholders, adding that details of the plans would be announced when they were firmed up and approved by the Board of Directors. The aggressive expansion plan is reflective of the Company’s improving profitability and cash flow.
Birla Corporation Limited will expand in markets where the company has an edge over competition and demand for cement is projected to get stronger, Lodha said. Compared with legacy assets of the company, new plants are going to be more efficient and profitable. Lodha added that the plants of RCCPL Pvt. Ltd (the erstwhile Reliance Cement Co. Pvt. Ltd which was acquired in 2016), subsidiary of Birla Corporation Limited, ‘are among the best in India judged by operating parameters.’