Birla Corp To Take Up Lodha re-appointment

Birla Corp To Take Up Lodha re-appointment
Published: 06 September 2004

Birla group company — Birla Corporation Ltd would take up the issue of re-appointing Rajendra Lodha as the director of the company, at its annual general meeting (AGM) on September 15, 2004.  The proposal would be taken up through an ordinary resolution. Mr Lodha has been on the line of fire from the Birla family after the late MP Birla’s wife Priyamvada Birla bequeathed her assets to Mr Lodha.

Mr Lodha who was appointed as director and co-chairman of the company on September 15, 2001 up to the date of the AGM (September 15, 2004). In a notice to the shareholders, the company said, “In view of the experience, qualification and expertise of Mr Lodha, the directors consider it to be in the interest of the company to appoint him as director, retiring by rotation. The company received a proposal from a member of the company proposing the candidature of Mr Lodha. The corporation would also seek shareholders approval not to fill in the vacancy caused due to the demise of Priyamvada Birla, at present.”

Birla Corporation Ltd has embarked on major pojects in the cement division to further improve the profitability of the company. It is setting up power plants of 27 MW each as new industrial undertakings at Satna in Madhya Pradesh and Chanderia in Rajasthan.

The company is also expanding its capacity at Durgapur plant by 1Mta by setting up a new unit to manufacture Portland cement called “Durga Hitech Cement.” The company is also working on enhancing the clinker capacity of Chanderia Cement Works by 300,000tpa.

The share of cement in the total revenue of the company for 2003-04 stood at 87 per cent. The company, in its annual report, has stated that the cement industry is expected to remain encouraging with adequate additional plan outlay provided by the government for the two main drivers for demand of cement, mainly infrastructure spending and housing projects.

The increased demand would assist in keeping the cement price stable aiding the profitabilit of the industry. The projects being undertaken by the company shall enable it to capitalise on the opportunities coming up for the cement industry helping it better the industry averages in operating parameters, the company said.