Birla Corporation Expands Kundanganj Unit, Adds 1.4 Million Tons Capacity
Filing Summary
Birla Corporation Limited’s subsidiary, RCCPL Private Limited, has commissioned a third production line at its Kundanganj unit in Uttar Pradesh, increasing the unit’s capacity by 1.4 million tons. This expansion raises the company’s consolidated production capacity to 21.4 million tons. The project, costing approximately Rs 300 crore, aligns with the company’s strategy to enhance its market presence in central and eastern Uttar Pradesh. Additional clinker will be sourced from integrated units in Satna, Chanderia, and Mukutban. The company plans further capacity expansion to 27.6 million tons by 2028-29.
Birla Corporation Limited, through its wholly-owned subsidiary RCCPL Private Limited, has commissioned a third production line at the Kundanganj unit in Uttar Pradesh. This development increases the unit’s production capacity by 1.4 million tons, bringing the company’s total consolidated production capacity to 21.4 million tons. The expansion is part of the company’s strategic plan to enhance its operational capabilities in the region.
The estimated cost for the Kundanganj expansion is approximately Rs 300 crore. The company will benefit from investment-promotion incentives linked to Goods and Services Tax for a period of 12 years. This financial structure supports the company’s long-term investment strategy in the region.
The expansion at the Kundanganj unit involves the installation of state-of-the-art technology to maximize the use of fly ash in producing Portland Pozzolana Cement (PPC). The company has consistently focused on increasing sales of blended cement products. Additionally, the project includes the development of solar power generation capacity, with a 5-MW solar power plant expected to be operational in the second quarter of the next fiscal year. This initiative will increase the share of renewable power in the unit’s total power consumption from over 30% to around 40%.
In the context of market operations, the additional clinker required for the expanded capacity will be sourced from Birla Corporation’s integrated units located in Satna, Chanderia, and Mukutban. This aligns with the company’s strategy to strengthen its competitiveness in central and eastern Uttar Pradesh. The company is also committed to supporting the Uttar Pradesh Government’s policies for balanced economic growth by creating employment opportunities and enhancing commercial activities in the region.
The timeline for further expansion includes plans to increase the company’s total production capacity to 27.6 million tons by the fiscal year 2028-29. This expansion is part of a broader strategy that includes scaling up production at the Maihar unit and establishing three new grinding units to optimize logistics and market reach.
Birla Corporation Limited is the flagship company of the MP Birla Group, with interests in cement and jute goods. Established in 1919 as Birla Jute Manufacturing Company Limited, the company has evolved to operate 10 cement plants across eight locations in India, producing a range of cement products under the MP Birla Cement brand. The company is focused on expanding its market presence and enhancing its product offerings to meet diverse consumer needs.