Birla Corporation plans to invest ₹4,335 crore to scale up production capacity

Embarking on its next phase of growth, cement maker Birla Corporation, along with its subsidiary RCCPL, is planning to invest ₹4,335 crore to scale up the production capacity by setting up three new grinding units and expanding an integrated unit.

Birla Corporation, the MP Birla Group flagship, reported around 33 per cent year-on-year jump in its consolidated net profit to ₹256.60 crore for the fourth quarter last fiscal, backed by good growth in revenue from operations as both demand and prices rose during the period.

The company had posted a net profit of ₹193.34 crore in the fourth quarter of FY24. Revenue from operations witnessed a 6 per cent y-o-y growth at ₹2,814.91 crore (₹2,654.44 crore).

Capex push

The company, in a statement, said its cement division’s operating profit margin was 20 per cent for the fourth quarter of FY25 compared to 18.6 per cent in the same period of FY24.

In a stock exchange filing, Birla Corporation said its boardat its meeting on Friday approved a capital expenditure towards increasing capacity by way of setting up of greenfield cement grinding unit, with a capacity of 2.80 million tonnes per annum (mtpa), at Gaya in Bihar in a phased manner. The proposed capacity would be added by Q4FY29 with an investment of ₹860 crore.

The company’s wholly-owned subsidiary RCCPL is planning a capital expenditure of ₹3,475 crore towards increasing capacity by way of setting up of two greenfield grinding units with a total capacity of 3.40 mtpa in Uttar Pradesh and one 3.70 mtpa brownfield clinker manufacturing unit at Maihar in Madhya Pradesh.

Ramping up capacity

“With stabilisation of earlier expansions, mainly at Mukutban in Maharashtra, and Chanderia in Rajasthan, and consolidation of the company’s position in the core markets of Central India, Birla Corporation is now embarking on its next phase of growth,” the company said, adding the proposed greenfield and brownfield projects would scale up the production capacity to 27.6 million tonnes by 2028-29 from 20 million tonnes.

“Our capacity utilisation in central and eastern India is more than 100 per cent,” said Harsh V Lodha, Chairman, Birla Corporation.

“We expect cement demand to grow at a CAGR of 6-7 per cent over the next few years. To improve our leadership position in high growth markets, we are ready for the next phase of growth. 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,” Lodha added.

For Q4FY25, Birla Corporation’s cement sales by volume grew 8 per cent y-o-y to 5.2 mt. In FY25, the company sold 18.1 mt of cement compared to 17.6 mt in FY24.

Published on May 9, 2025