Post this expansion, Birla Corporation’s consolidated production capacity stands at 21.4 million tonne
RCCPL, a wholly-owned subsidiary of Birla Corporation, on Monday commissioned the third line of production at its Kundanganj unit, scaling up production capacity by 1.4 million tonne (mt). Post this expansion, Birla Corporation’s consolidated production capacity stands at 21.4 mt.
As notified by the company earlier, the production capacity 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 company said in an exchange filing.
The 1.4 mt increase in grinding capacity is expected to create close to 1,00,000 direct and indirect jobs as well as strengthen Birla Corporation’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.
At Kundanganj, the company has invested in state-of-the-art technology to maximise consumption of fly ash to produce Portland Pozzolana Cement or PPC. Birla Corporationhas, on a sustained basis, pushed growth in sales of blended cement or PPC.
Capacity Expansion Project
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 per cent to around 40 per cent. For its capital expenditure at Kundanganj, the company will receive investment promotion incentives linked to Goods and Services Tax (GST) for 12 years, the statement added.
Earlier, Birla Corporation 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.
