Birla Corporation subsidiary commissions third line at Kundanganj unit, production capacity scaled up to 21.4 mt

RCCPL Private Limited, a wholly-owned subsidiary of Birla Corporation Limited, on Monday commissioned the third line of production at its Kundanganj unit, scaling up production capacity by 1.4 million tons (mt). Post this expansion, Birla Corporation Limited's consolidated production capacity stands at 21.4 mt, and, as announced by the Company earlier, it is to be further expanded to 27.6 mt by 2028-29. The estimated cost of the Kundanganj expansion is around Rs 300 crore.

The 1.4-mt increase in grinding capacity is expected to create close to 100,000 direct and indirect jobs as well as strengthen Birla Corporation Limited's competitiveness in its core markets in central and eastern Uttar Pradesh. Additional clinker is to be sourced from the Company's integrated units at Satna, Chanderia and Mukutban.

In line with the Uttar Pradesh Government's policies to promote balanced economic growth, Birla Corporation Limited remains committed to invest in the State with focus on creating jobs and commercial opportunities.

Birla Corporation Limited is also looking to make significant contribution to the Union Government's drive to promote housing through the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) and other similar schemes.

At Kundanganj, the Company has invested in state-of-the-art technology to maximize consumption of fly ash to produce Portland Pozzolana Cement or PPC. Birla Corporation Limited has, on a sustained basis, pushed growth in sales of blended cement or PPC.

Under the capacity expansion project, the factory's solar power generation capacity and peripheral infrastructure, such as road and rail connectivity, are also being boosted to support the expansion.

The Company is setting up a 5-MW solar power plant at the factory, which is expected to be commissioned in the second quarter of the next fiscal year. When functional, the share of renewable power in total power consumption of the Kundanganj unit will go up from a little over 30% to around 40%.

For its capital expenditure at Kundanganj, the Company will receive investmentpromotion incentives linked to Goods and Services Tax for 12 years.

Earlier, Birla Corporation Limited had announced that, along with its subsidiary RCCPL, it would scale up the production capacity of the Maihar unit alongside Kundanganj, as well as set up three new grinding units to reduce lead distance and strengthen leadership in high-growth markets.

Shares of Birla Corporation Limited was last trading in BSE at Rs. 805.00 as compared to the previous close of Rs. 815.00. The total number of shares traded during the day was 11022 in over 1530 trades.

The stock hit an intraday high of Rs. 812.05 and intraday low of 789.65. The net turnover during the day was Rs. 8847752.00.

Source : Equity Bulls

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BirlaCorporation INE340A01012 KundanganjUnit