Birla Corp plans greenfield expansion for cement biz
Birla Corporation Limited, the flagship company of MP Birla group, is planning to expand its cement manufacturing capacity by setting up greenfield units, a senior company official said on Tuesday.
Speaking to reporters at the sidelines of 87th annual general meeting of the company, Chairman and Managing Director RS Lodha said details of the expansion would be finalised soon.
He said the liquidity of the company was very good and with a high borrowing capacity, Birla Corporation was well poised to set up greenfield units.
The current installed capacity of the company is 5.78 million tonnes.
Lodha said that as a concurrent exercise, the company would also go for brown field expansion at its Chanderia and Satna plants. This would entail an additional capacity of 1.75 million tonnes, which was expected to be completed by 2009.
"Our vision is to have an annual capacity of 10 million tonnes by the year 2010," Lodha said.
He said the company was also exploring the possibility of acquisition of units, provided it was a commercial proposition, he added.
The cement business of the company contributed to more than 92 per cent of Birla Corporation's revenue.
Lodha said that the cement boom had benefited the company to a large extent. He said that Birla Corporation was in the number four position in terms of operating margins as per a comparison made by Cement Manufacturers Association.
He said that during the current financial year, the company was hopeful of achieving a turnover of Rs 2,000 crore. Last fiscal's turnover was Rs 1794.51 crore