“Plans are underway to reach a target of 30 MTPA by 2027,” Lodha told shareholders.
He added that details of the plans will be announced when they are confirmed and approved by the company’s board of directors.
This is a new target set for the company which had previously announced that it would increase its production capacity to 25 MTPA by 2025, according to the statement.
Birla Corporation has a current production capacity of 15.6 mt and is expected to reach nearly 20 MTPA by the end of the current fiscal year, when its completely new 3.9 MTPA plant in Mukutban, near Nagpur, will be commissioning.
Compared to the company’s legacy assets, the new factories will be more efficient and profitable, Lodha said.
The factories of RCCPL Pvt. Ltd (formerly Reliance Cement Co. Pvt. Ltd which was acquired in 2016), a subsidiary of Birla Corporation Limited, is among the best in India by operating parameters, he added.
The aggressive expansion plan reflects the improved profitability and cash flow of the company, he added.
According to Lodha, demand for cement is expected to strengthen and Birla Corporation will expand into markets where it has an advantage over its competitors.
While the new Managing Director and CEO of Birla Corporation said the company has enough limestone reserves to last for decades at its current scale of operation.
Birla Corporation Limited is the flagship company of the MP Birla Group, which has interests in the cement and jute industries. It currently operates 10 cement plants spread across the country.