Birla Corp Subsidiary Commissions 3rd Line at Kundanganj, Capacity Rises to 21.4 MT
Birla Corporation's subsidiary commissioned a third production line at its Kundanganj unit, increasing capacity by 1.4 million tons to 21.4 million tons. The expansion cost is ₹300 crore. A 5-MW solar power plant is also being set up. The company aims for 27.6 mt capacity by 2028-29.
The capacity expansion and investment in renewable energy are significant for the company's operational efficiency and market position, but the direct financial impact will be seen over time.
The commissioning of a new production line and expansion of capacity are positive developments for the company, indicating growth and increased operational capability.
Birla Corporation Limited's wholly-owned subsidiary, RCCPL Private Limited, has successfully commissioned the third line of production at its Kundanganj grinding unit in Uttar Pradesh. This expansion increases the unit's production capacity by 1.4 million tons (mt), bringing Birla Corporation Limited's consolidated production capacity to 21.4 mt. The company plans to further expand capacity to 27.6 mt by 2028-29.
The estimated cost for the Kundanganj expansion is approximately ₹300 crore. This capacity increase is expected to create around 100,000 direct and indirect jobs and enhance the company's competitiveness in central and eastern Uttar Pradesh. Additional clinker will be sourced from the company's integrated units in Satna, Chanderia, and Mukutban.
The company is also investing in a 5-MW solar power plant at the Kundanganj factory, expected to be commissioned in the second quarter of the next fiscal year. This will increase the share of renewable power in the unit's total consumption from over 30% to around 40%. The expansion project also includes boosting peripheral infrastructure such as road and rail connectivity. For this capital expenditure, Birla Corporation Limited will receive investment-promotion incentives linked to Goods and Services Tax for 12 years.
Birla Corporation Limited, the flagship company of the MP Birla Group, has interests in cement and jute goods. Along with its subsidiary RCCPL, it operates 10 cement plants across eight locations with an annual installed capacity of 21.4 million tons, producing cement under the MP Birla Cement brand. The company also sells construction chemicals and wall putty.
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