Cement maker Birla Corporation Ltd has announced a capacity expansion of its clinker unit and grinding plants in Madhya Pradesh and Uttar Pradesh, entailing an investment of ₹4,335 crore.

With this, the company’s capacity will go up from 20 million tonnes to 27.6 mt. According to the plan, BCL’s subsidiary RCCPL Private Limited will invest ₹2,300 crore into its Maihar (MP) unit to expand its clinker production capacity.

The clinker produced at Maihar will be fed to the three new grinding units, to be set up at Prayagraj, Gaya and Aligarh, for which BCL and RCCPL have earmarked ₹2,035 crore.

“Our capacity utilisation in central and eastern India is more than 100 per cent,” Harsh V. Lodha, chairman of BCL, said in a statement.

“We expect cement demand to grow at a CAGR of 6-7 per cent over the next few years. To improve our leadership position in high growth markets, we are ready for the next phase of growth. Addition of fresh capacity will have a favourable impact on profitability as well as reduce lead distances, with grinding units located closer to the market,” Lodha added.

The expansion comes after stabilisation of earlier expansions, mainly at Mukutban, in Maharashtra, and Chanderia, in Rajasthan, and consolidation of the position in the core markets of central India.

BCL has posted a 33.2 per cent jump in net profit at ₹257 crore and a 6.8 per cent rise in revenue at ₹2863 crore.