Birla Corp to set up greenfield cement plant in Maharashtra

The company plans to build a new integrated cement plant at Mukutban, Maharashtra with an investment of Rs. 2,450 crore. 

Birla Corporation informed bourses that its wholly-owned subsidiary Reliance Cement Company Private Limited (RCCPL) is expanding its capacity by setting up a new integrated cement plant at Mukutban, Maharashtra with 40 MW captive power plant and 10.60 MW waste heat recovery system.

The proposed greenfield capacity expansion is almost 3.9 (MTPA) which is likely get complete by FY22.

For this greenfield expansion company is likely to invest Rs. 2,450 crore which will be funded through a mix of internal accrual and debt. The company further stated that is has already acquired land and has mineral concession required for the project. Moreover, the proposed plant has already received environment clearance.

The company’s current capacity is 5.58 million ton per annum (MTPA) and as on FY18 the company was operating at 81 per cent utilisation.

In 2016, the Birla Corporation had acquired Reliance Cement Company Private Limited from Reliance Infrastructure for Rs. 4,800 crore.

On Monday, the stock of Birla Corporation opened at Rs. 788 per share and was trading in the positive zone. At 11.10 hours, the stock was at Rs. 793 per share, up by almost 1 per cent.