Calcutta | Nov. 22, 2016: Birla Corporation, which acquired the entire cement business of Reliance Infrastructure, plans to set up a 3-million-tonne cement clinkerisation unit at Mukutban in Maharashtra.
The MP Birla-flagship had acquired the entire cement business of Reliance Infrastructure during the July-September quarter, following which Reliance Cement Company Pvt Ltd has come under Birla Corporation.
"This acquisition has provided the company with the ownership of high-quality assets, taking its total capacity to 15.5 million tonnes per annum (MTPA) from 10MTPA, strengthening its presence in the high-growth central region," the company said in a statement.
"The company's expansion potential will also be enhanced significantly by valuable mineral concession in several states, besides Madhya Pradesh. The mining lease at Mukutban will enable it to set up a 3mt clinkerisation unit in the foreseeable future," the statement said.
The company's net profit during the second quarter more than doubled to Rs 58.43 crore from Rs 23.20 crore a year ago. However, production fell to 18.03 lakh tonnes compared with the year-ago period. Despatch, too, declined to 17.65 lakh tonnes. As a result, gross sales dipped 3.5 per cent to Rs 882.49 crore over the year-ago period.
"Core markets of the company were extensively affected by heavy monsoons, with many areas in Rajasthan and Madhya Pradesh hit by floods. Despite this, the company maintained its market share in relevant geographies, while improving the net realisation through initiatives such as geo-mix optimisation, focus on premiums and distribution efficiencies," it said.
The company, however, expected a rise in demand after a good monsoon and the festive season. "This seems to have suffered a temporary setback following the withdrawal of high-denomination notes as a large portion of cement trade in the secondary and tertiary markets was transacted in cash." The company's scrip today was up 0.11 per cent at Rs 660 on the BSE.
(Source: http://www.telegraphindia.com/)