Birla Corporation Limited has informed the Exchange regarding copy of press release issued by the Company w.r.t. the commencement of third line of production at Kundanganj unit in Uttar Pradesh of RCCPL Private Limited, a wholly owned material subsidiary of the Company.
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Birla Corporation's wholly-owned subsidiary RCCPL has commissioned the third production line at its Kundanganj grinding unit in Uttar Pradesh, adding 1.4 million tonnes of cement grinding capacity. With this expansion, the company's consolidated cement capacity now stands at 21.4 million tonnes per annum, up from 20 mt earlier. The Kundanganj expansion is estimated to cost around Rs 300 crore and is expected to create close to 100,000 direct and indirect jobs. The company is also setting up a 5 MW solar power plant at the facility, targeted for commissioning in Q2 of the next fiscal year, which will raise the renewable energy share at the unit from around 30% to 40%. Birla Corporation has guided for further scaling up consolidated capacity to 27.6 mt by FY29.
Positive for shareholders: capacity addition strengthens Birla Corporation's presence in central and eastern Uttar Pradesh, a high-growth cement market, and supports volume growth ambitions. The expansion also comes with GST-linked investment incentives for 12 years, improving project economics. Near-term stock reaction may be mildly positive given the visible execution on the growth roadmap.