Birla Corporation to Invest Rs. 4,335 Cr. to Expand its Cement Production Capacity
Birla Corporation, along with its subsidiary Rajshree Consolidated Consulting Private Limited (RCCPL), will be investing a total of Rs. 4,335 crore to expand cement production capacity. As a part of this expansion, the companies will be setting up three new grinding units and expanding an existing integrated unit.
Birla Corp. to Set up Greenfield Cement Grinding Unit in Bihar
Birla Corporation will be setting up a greenfield cement grinding unit at Gaya in Bihar, with a capacity of 2.80 Million Metric Tonnes Per annum (MMTPA). This capacity will be added in different phases. In the phase 1 of development, 1.40 MMTPA will be added by Q4 of FY-27 and the remaining 1.40 MMTPA will be added by Q4 of FY-29.
Both these phases will come up with a total investment of Rs. 860 crore. The company will finance this expansion through a combination of debt and internal accruals.
Additional Cement Capacity Expansion by RCCPL
Apart from the above-mentioned cement grinding unit, Birla Corporation’s wholly-owned subsidiary, RCCPL, will invest Rs. 3,475 crore to expand its cement production capacity.
As part of its expansion plan, RCCPL will be establishing two greenfield cement grinding units in Uttar Pradesh with a combined capacity of 3.40 MMTPA. One unit, with a capacity of 1.4 MMTPA, will be developed in Prayagraj, Uttar Pradesh and is expected to become operational by the third quarter of FY 2027-28. The second unit, with a capacity of 2 MMTPA, will be set up in Aligarh, UP and is expected to be operational by Q4 of FY-29. The total investment for these two units is estimated at Rs. 1,175 crore.
In addition, RCCPL will expand the capacity of its clinker manufacturing unit at Maihar, Madhya Pradesh to 3.70 MMTPA. This expansion will be done at an estimated cost of Rs. 2,300 crore. The clinker produced at Maihar will be fed to the three new grinding units, which will be established in Prayagraj, Gaya and Aligarh.
This entire capacity expansion will be financed through a mix of debt and internal accruals.
“[Capacity] Addition will have…Favourable Impact on Profitability” – Birla Corp.’s Chairman
Commenting on this development, Mr. Harsh V. Lodha, Chairman of Birla Corporation, said that the capacity utilization at the company’s cement manufacturing units is over 100% in central and eastern India. Mr. Lodha expects the overall cement demand in India to grow at a Compounded Annual Growth Rate (CAGR) of 6% to 7% over the next “few years”. He elaborated, “Addition of fresh capacity will have a favourable impact on profitability as well as reduce lead distances, with grinding units located closer to the market”.
About Birla Corporation Limited: Birla Corporation, a part of MP Birla Group, was founded in 1910 by Ghanshyam Das Birla. The company is headquartered in Kolkata. Birla Corporation reported a consolidated revenue of Rs. 9,312.40 crore during FY-25.
