Investment15 Sept 2025, 05:34 pm
Birla Corporation's Chairman Announces ₹4,335 Crore Investment to Expand Cement Production Capacity
AI Summary
In the 105th Annual General Meeting, Birla Corporation's Chairman discussed the company's performance in FY 2024-25, which was marked by unprecedented pricing pressure and a 2.5% sales growth by volume in the cement division. Despite the challenges, the company's premium products, including Perfect Plus, saw a significant increase in sales. The company also announced a ₹4,335 crore investment to scale up production capacity from 20 million tons to 27.6 million tons by 2028-29, aiming to benefit from the expected 6-7% CAGR growth in cement demand and the GST rate cut on cement.
Key Highlights
- Birla Corporation's cement division maintained a 91% capacity utilization and registered a 2.5% sales growth by volume in FY 2024-25.
- The company's premium products, including Perfect Plus, saw an 11% increase in sales despite the difficult conditions.
- Birla Corporation announced a ₹4,335 crore investment to expand cement production capacity from 20 million tons to 27.6 million tons by 2028-29.
- The Indian cement industry is expected to grow at a CAGR of 6-7% over the next few years, and the GST rate cut on cement from 28% to 18% is expected to boost demand for housing and cement prices.
- Birla Corporation has brought down its net debt to ₹2,200 crore from ₹3,000 crore a year earlier and reduced its cost of borrowing to 7.56%.