MP Birla Group flagship company Birla Corporation has drawn up a strategy to augment its cement production capacity to 25 million tons by the 2025-26 fiscal from the existing 20 million tons.
The cement maker is planning to meet its targeted production by increasing capacity utilisation at its Mukutban plant in Maharashtra, setting up the second clinker unit at Maihar in Madhya Pradesh and constructing new grinding units.
“With the commissioning of Mukutban plant, we have virtually ring-fenced our core market of central India – which we can service seamlessly from our six plants, namely Maihar, Satna, Kundangunj, Raebareli, Chanderia, and now, Mukutban. The strategic location of these plants and standardisation of product quality allow us to interchange source of supplies to maximise realisation and serviceability for our customers,” said Birla Corporation Chairman Harsh V Lodha during the 103rd AGM.
With the increasing capacity utilisation of the Mukutban unit, the company is confident of increasing its market share in the premium cement segment in that state, where other major players are active. The integrated Mukutban plant has an installed capacity of 3.9 million tons annually. The capacity utilisation at present stands at 40-45%, and the company aims at a capacity utilisation of nearly 3 million tons by the 2024-25 fiscal.
The cement maker is also expecting its EBITDA to increase to Rs 850 per ton by this fiscal end from Rs 664 at the end of the first quarter, he said. The rise in EBITDA would be mainly from cost reduction and start of the incentive from the Maharashtra government for capital expenditure at Mukutban plant.