Brownfield expansions, greenfield projects on cards

Our Bureau

Kolkata, July 17 Birla Corporation Ltd, the flagship company of the M.P. Birla Group, is hopeful of having an installed cement production capacity of 10 million tonnes per annum (mtpa) by 2010. This is likely to be achieved by way of brownfield expansions and greenfield projects, according to Mr R.S. Lodha, Chairman.Speaking to newspersons after the company’s 87th annual general meeting here today, Mr Lodha said expansion projects had been taken up at the company’s cement plants at Satna and Chanderia. The expansion programmes, envisaging an additional capacity of 1.7 mtpa, expected to be commissioned by 2008-09, would take the company’s aggregate cement production capacity to seven mtpa.

Mr Lodha said that augmenting the company’s cement production capacity from seven mtpa to 10 mtpa would entail an investment of around Rs 1,200 crore. He said Birla Corporation’s liquidity position, its investments in mutual funds and low debt-equity ratio would make its proposed investments possible. A decision on the possible location of the proposed greenfield project was, however, yet to be taken, he said.

Cement sales account for 92 per cent of Birla Corporation’s turnover even as jute accounts for six per cent of the same. Other business units account for the balance two per cent.During the year ended March 31, Birla Corporation achieved gross sales of Rs 1,794.51 crore, higher than Rs 1,433.44 crore recorded in 2005-06. The profit before tax stood at Rs 461.74 crore (Rs 144.08 crore). The profit after tax was Rs 326.23 crore (Rs 125.75 crore). A dividend of Rs 3.50 (35 per cent) on equity shares of Rs 10 each was declared for the year gone by.

The company hopes to surpass the Rs 2,000-crore turnover mark in 2007-08, a statement issued by the company said.

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