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Birla Corporation, the flagship Company of the M.P. Birla Group is planning to increase cement production to 25 million tonnes per annum (MTPA) by the end of financial year 2025-26.  The existing capacity of Birla Corporation headed by Harsh V. Lodha stands at about 20 MTPA.  The company is planning to ramp up its production capacity from a greenfield cement plant at Mukutban near Nagpur, setting up a second clinker unit at Maihar in Madhya Pradesh and constructing new grinding units in north India.

Birla Corp to increase cement capacity to 25 MT by 2025-26

Cement maker Birla Corporation, the M P Birla Group flagship, on Tuesday reported a consolidated net profit of ₹109.14 crore for the third quarter this fiscal, against a net loss of ₹49.91 crore during the corresponding quarter last fiscal.The company witnessed revenue growth of 14.68 per cent year-on-year at ₹2,312 crore for Q3FY24 compared with ₹2,016.11 crore for Q3FY23, it said in a stock exchange filing. During the quarter, cement sales by volume stood at 4.2 million tonnes, which was up by 13.2 per cent y-o-y. The company, in a release, said it achieved a capacity utilisation of 85 per cent for the quarter compared with 74 per cent a year earlier and 83 per cent in the September quarter.

Birla Corporation reports consolidated Q3 net profit of ₹109 crore

BCL had acquired RCCPL in August 2016 at a total consideration of Rs 4,800 crore (including debt of Rs 2,400 crore). The company paid total consideration of Rs 2,272 crore towards the transaction, which had been funded by debt, cash, and liquid investment. Additionally, RCCPL was inherently leveraged which resulted in weakening of debt protection metrics at consolidated level.

Profitability is susceptible to volatility in the costs of inputs such as material, power, fuel and freight. Also, any change in government policies could impact the operating margin. For instance, in fiscal 2018, the operating profit was impacted by issues such as a ban on sand mining in Rajasthan and Uttar Pradesh, a ban on usage of pet coke in Rajasthan and shortage of railway rakes. The operating margin in fiscal 2023 was impacted by higher cost of coal/pet coke and diesel.

The issuer has made timely interest payments.

Harsh V Lodha, Chairman

Arvind Pathak, MD & CEO

The company has its captive limestone mines, clinker capacities as well as captive power plants and has commissioned WHRS capacity of 8.6 MW in fiscal 2023. The market position shall further strengthen with the continued ramp up in production from the Mukutban plant and expected commissioning of 1.4 mtpa grinding capacity at Kundanganj during fiscal 2026.

Financial flexibility is backed by liquidity, sizable freehold land parcels, and support available from the MP Birla group. The company had cash, cash equivalents and investments of more than Rs 700 crore as on September 30, 2024. The company has demonstrated ability to raise funds at competitive interest rates.


Operating profitability has benefitted from the SGST incentives available to RCCPL and various synergies in logistics, power and fuel, and selling and distribution expenses. Capacity utilization at RCCPL stood at 84% in fiscal 2024 and is expected to remain strong over the medium term. It has mineral concessions in Madhya Pradesh, Maharashtra and Himachal Pradesh for further expansion. Its cement plants are relatively new and enjoy various tax incentives. Given BCL's presence in the central region, the acquisition has resulted in sizable synergies.

Security Name: 9.25% Birla Corporation Limited 14 Sep 2026

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INE340A07092

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Birla Corp to increase cement capacity to 25 MT by 2025-26

Birla Corporation reports consolidated Q3 net profit of ₹109 crore

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