Birla Company, the flagship Firm of the M.P. Birla Group, is planning to extend cement manufacturing to 25 million tonnes each year (MTPA) by the tip of monetary yr 2025-26. The prevailing capability of Birla Company headed by Harsh V. Lodha stands at about 20 MTPA. The corporate is planning to ramp up its manufacturing capability from a greenfield cement plant at Mukutban close to Nagpur, establishing a a second clinker unit at Maihar in Madhya Pradesh and setting up new grinding items in north India.
“With the commissioning of Mukutban we have now just about ring-fenced our core market of Central India – which we will service seamlessly from our six vegetation, specifically Maihar, Satna, Kundangunj, Raebareli, Chanderia and, now, Mukutban,” Mr. Lodha instructed shareholders throughout the 103rd annual normal assembly of the corporate right here on Tuesday. The strategic location of those vegetation and standardisation of product high quality permits us to interchange supply of provides to maximise realisation and serviceability for our prospects, the Birla Company Chairman added.
Mr. Lodha additionally spoke concerning the challenges with the cement plant and added quickly after it was commissioned in April 2022, “we bumped into headwinds of exorbitantly excessive energy and gas costs, triggered by Ukraine–Russia struggle”.
The present capability utilisation of Mukutban, which has an put in manufacturing capability of three.9 million tonnes, stands at 40-45%. With the prolonged mission completion time leading to the price of the plant going up by ₹300 crore, totally on account of pursuits throughout assemble, the Mukutban mission got here at a value of ₹2,744 crore.
“We’re engaged on exit goal this yr of two lakh metric tonnes and subsequent yr it can ramped as much as 2.5 lakh metric tonnes,” Birla Company managing director and chief govt officer Sandip Ghose instructed reporters in a media convention put up AGM.
Mr. Ghosh added that the corporate plans to lift its EBITA to ₹850 per tonne by this fiscal finish from ₹664 per tonne on the finish of the primary quarter which might come from greater capability utilisation and optimisation of price and sale.
On the uncooked materials and power safety entrance, the corporate officers stated that limestone from Mukutban mines and the limestone from different mines would additionally come at a low worth. The corporate has been allotted captive coal mines of Bikram and Marki Barka. Whereas mining at Bikram is anticipated to begin later on this monetary yr, Marki Barka mine is anticipated to be operational within the monetary yr 2025-25. “As soon as operational, these mines won’t solely result in financial savings within the gas price but additionally present a excessive diploma of gas safety to the corporate. With the commissioning of those coal mines, we might have one of many highest sources of captive gas for kiln [more than 55 %] within the business — insulating us from vagaries of the market,” Mr. Lodha stated.