Birla Corp to invest Rs 2450cr

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Calcutta: Birla Corporation plans to invest Rs 2,450 crore to set up a 3.9-mt-per-annum integrated plant at Yavatmal in Maharashtra. The cement plant is part of RCCPL Private Limited, a wholly owned subsidiary of the company since the MP Birla Group flagship acquired Reliance Cement.

“This will increase the capacity of RCCPL Private Limited from 5.58 million tonnes to 9.48 million tonnes. The project will be financed through a mix of debt and internal accruals. It is expected to be commissioned in 2021-22,” Birla Corporation said.

The company said the proposed location was connected with road and rail network and environmental clearance for the plant had been obtained.

“RCCPL had the limestone mineral concessions required for the project and also the land. There is cement demand in Maharashtra and the project is entitled to attract a fiscal incentive package from the state government,” said Aditya Sarogi, chief financial officer of Birla Corporation.

Birla Corporation had acquired Reliance Cement at an enterprise value of Rs 4,800 crore. Following the acquisition, the company’s total production capacity has increased to 15.5 mtpa from 10 mtpa earlier.

The company has posted a net profit of Rs 83.86 crore in the first quarter of 2017-18 against Rs 43.21 crore in the corresponding quarter a year ago. Income from operations (net of taxes) during the quarter was Rs 1,655.75 crore compared with Rs 1,457.79 crore a year ago.

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