Birla Corporation Bets Big on Expansion, Eyes Growth Beyond Cement

Birla Corporation, the flagship of the MP Birla Group and one of India’s leading cement manufacturers, is preparing for a major expansion. At its 105th Annual General Meeting, Chairman Harsh V Lodha announced plans to raise production capacity from 20 million tonnes to 27.6 million tonnes by FY29. The company will invest ₹4,335 crore in this growth initiative, which reflects its focus on strengthening its cement presence while also moving further into the building materials value chain.

A large portion of this investment will be channelled through its subsidiary RCCPL. The Maihar unit in Madhya Pradesh will see an investment of ₹2,300 crore to expand clinker production capacity. This expansion will support three new grinding units that are planned at Prayagraj, Gaya, and Aligarh. These units together will receive an additional investment of a little over ₹2,035 crore. The move is expected to enhance the company’s access to key markets in Bihar and Maharashtra while deepening its presence in its traditional northern and central regions.

Lodha pointed out that the recent decision of the Goods and Services Tax Council to cut GST on cement and rationalise taxes on other building materials is expected to give a strong push to housing demand. He added that while the impact on profitability for manufacturers may take time to assess, the policy change will certainly increase demand for housing and in turn support cement prices across regions.

The company has shown resilience despite facing pressure on pricing. In FY25, cement prices dropped by 11 percent in the first eight months, although some recovery was seen towards the end of the year. Birla Corporation still managed to achieve a capacity utilisation of 91 percent and grew sales volumes by 2.5 percent. The first quarter of this fiscal has already brought encouraging results with overall sales volumes rising 9 percent. The east registered growth of 18 percent and the west saw a 15 percent increase.

In addition to its cement expansion, Birla Corporation is placing emphasis on brand extensions. It plans to build scale in readymix concrete and construction chemicals, positioning itself as a comprehensive building solutions provider in line with modern construction needs.