Birla Corporation has unveiled an ambitious capacity expansion roadmap, setting targets to significantly scale up its cement manufacturing capabilities over the next five years. The company's strategic growth plan positions it for substantial market expansion through new facility development and operational enhancement.

Capacity Expansion Timeline

The cement manufacturer has outlined a phased approach to capacity enhancement with specific milestones for the coming years:

Strategic Infrastructure Development

Birla Corporation's expansion strategy centers on establishing new grinding units in key locations to support increased production capacity. The company has identified Gaya and Prayagraj as strategic locations for these new grinding facilities, which will play a crucial role in achieving the targeted capacity milestones.

These grinding units represent a significant investment in infrastructure development and are expected to enhance the company's operational footprint across important regional markets. The selection of Gaya and Prayagraj indicates a focus on strengthening presence in northern and eastern Indian markets.

Operational Cost Challenges

Despite the positive expansion outlook, Birla Corporation faces operational efficiency challenges that impact its competitive positioning. The company's EBITDA per ton currently lags behind some industry competitors due to several structural factors:

• Legacy Infrastructure: Cost disadvantages stemming from older manufacturing plants
• Regional Expense Variations: Higher operational expenses in certain geographical areas
• Northern Operations: Particularly elevated costs in northern regional operations

These cost structure challenges highlight the importance of the company's expansion strategy, as newer facilities may offer improved operational efficiency and cost optimization opportunities. The planned grinding units could potentially address some of these competitive disadvantages through modern infrastructure and strategic location advantages.

Birla Corporation has provided comprehensive updates on its growth projections, capital expenditure plans, and operational developments. The cement manufacturer outlined its volume growth expectations while revising capex guidance for the current financial year.

Volume Growth Projections

The company expects to achieve 4% to 5% volume growth this quarter, aligning with broader industry trends. Looking ahead, Birla Corporation anticipates maintaining a steady growth trajectory with projected growth rates of 3% to 4% in the future periods.

Capital Expenditure Update

Birla Corporation has revised its capital expenditure outlook for FY2026. The company's capex for the first nine months of FY2026 stands at around INR300 crores. Notably, the full-year capex is anticipated to be lower than previously guided, indicating a more conservative approach to capital allocation.

Operational Developments

The company continues to advance its expansion plans with the Kundanganj Line 3 operations set to commence during the current quarter. Additionally, Birla Corporation maintains its fuel cost projections, expecting costs to reach INR 1.5 per 1000 kilocalorie in Q4 FY2026.

These updates reflect Birla Corporation's balanced approach to growth, combining volume expansion expectations with prudent capital management while maintaining operational efficiency.