Birla Corporation shares jumped more than 6% on Thursday after the company said it would increase its annual cement production capacity to 30 million tonnes by 2027 from its previous target of increasing capacity production to 25 million tonnes by 2025.
Birla Corporation’s current production capacity is 15.6 million tonnes. That will reach nearly 20 million tonnes by the end of the current fiscal year, when its completely new 3.9 million tonnes plant in Mukutban, near Nagpur, comes on stream, the company said in a statement. regulatory dossier.
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The aggressive expansion plan reflects the improved profitability and cash flow of the business.
“Birla Corporation Limited will expand into markets where the company has a competitive advantage and demand for cement is expected to strengthen,” said Shri Harsh V Lodha, Chairman of MP Birla Group.
Birla Corporation is the flagship company of the MP Birla group.
Compared to the company’s legacy assets, the new factories will be more efficient and profitable, the company added on the file.
In addition, however, the company said its plan to expand the capacity of its Kundanganj unit to 3 million tonnes from 2 million tonnes remains unchanged.
At 10:47 am, shares of Birla Corporation were trading 5.3 percent higher at Rs 1,427.40.
The stock has gained in the past three days and is up nearly 10 percent in returns during the period.