Birla Corporation, the MP Birla Group flagship, plans to scale up cement production capacity to 30 million tonnes (mt) by 2027.
The company’s production, which currently stands at 15.6 mt, is expected to increase to 20 mt by the end of this fiscal once the 3.9 mt greenfield plant at Mukutban near Nagpur is commissioned. It had earlier targeted to further raise production capacity to 25 mt by 2025.
According to Harsh V Lodha, Chairman, MP Birla Group, details of the plans are yet to be firmed up and would be announced once approved by the company’s board of directors.
“We had earlier stated that the company is looking to scale up capacity to 25 mt by 2025. Plans are afoot to grow further and achieve a target of 30 mt by 2027,” he said while addressing the company’s annual general meeting.
The company faced disruptions in the commencement and progress of work at Mukutban due to the non-availability of workers (mainly migrants). The project cost had to be revised from Rs 2,450 crore to Rs 2,744 crore on account of revisions in the project commencement schedule necessitated due to pandemic, augmentation of infrastructure, and other factors including commodity price. However, the company is now hopeful of completing work and commencing production by Q4FY22.