Birla Corp to raise cement capacity to 20 mt
The Mukutban project has been funded with the help of a 12-year long term loan of about Rs. 1625 crores by a partnership of banks. The partnership is between four banks, led by the Bank of Baroda with an interest less than 9%.
Pan India, the Birla Corporation is set to increase its production to nearly 20 million tonnes per annum. This major decision will be carried out through northern, central and western India within the next three years, eventually making the Birla Corporation the 5th largest cement company in India.
Birla Corporation has already started to build plants to achieve the 20MT target. This consists of a 3.9 mtpa plant. Apart from it, there is a 40MW plant, along with a 10.6MW plant in Mukutban in Maharashtra, that recovers waste-heat. The overall investment is Rs. 2450 crores that would be commissioned by the end of the second quarter of the financial year 2021-22. With the completion of it, the company’s current 15.58mtpa will jump to 19.48mtpa. This growth shall be a challenge as achieving the target will bring Birla Corporation by Ramco Cement, who is currently manufacturing 16.69 mtpa.
According to sources, Birla Corporation is about to extend its production line to the already operating unit in Maihar in Madhya Pradesh. There are just news roaming about it as the final call has not been taken yet. With the Mukutban project being sourced with the 12-year long stretching loan of Rs. 1625 crores by a partnership of four banks, Bank of Baroda has decided to lead it. The interest rate would be lesser than 9% with an additional Rs. 2500 crores being invested in other projects.
In a statement, Yes Bank said that the extension plan of nearly 5.2 mtpa in states like Maharashtra and Uttar Pradesh will help the company surpass the 20MT target, with an increase of 33% in the production.
The Chief Operation Officer of the currently 7th largest cement company, the Birla Group said that the growth will help them enter new categories apart from cement. This target would help them get into the building strategies.
According to sources, COO Sandip Ghose said that the company will look into the concrete business once it expands and achieves its target. This will help them get a research team and work more strategically.
The Birla Group has already slid into the wall putty products. Other than that, the company is considering to get into the market of water repellants and other similar construction chemical products.