The board of India’s Birla Corp has approved capital expenditure for the phased implementation of a 2.8Mta greenfield cement grinding unit at Gaya, Bihar. The proposed facility will be operational by 4QFY28-29 with an investment of INR8.6bn.
Additionally, Birla’s wholly-owned subsidiary, RCCPL, is planning to invest INR34.75bn to set up two greenfield grinding units in Uttar Pradesh with a total capacity of 3.4Mta, as well as a 3.7Mta brownfield clinker manufacturing unit at Maihar, Madhya Pradesh.
Birla Corp Chairman, Harsh V Lodha, comments: “Our capacity utilisation in central and eastern India is more than 100 per cent. We expect cement demand to grow at a CAGR of 6-7 per cent over the next few years. 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.”
Net profits up
The company reported consolidated net profits of INR2.56bn for 4Q24-25, representing a a 33 per cent YoY increase, backed by good growth in revenue from operations.
Net profits for the 4QFY24-25 came in at INR1.93bn, while revenue from operations grew by six per cent to INR28.14bn. During the same period Birla Corp said the company’s profit margin increased to 20 per cent, up from 18.6 per cent for the same period last year.
