The Hindu Business Line : Birla Corp plans cement expansion

Mr Rajendra Singh Lodha, Chairman, Birla Corporation Ltd, coming out after chairing the company's AGM for the first time in Uttam Mancha in Kolkata on Friday. - A. Roy Chowdhury

Kolkata , Aug. 26

BIRLA Corporation Ltd, the flagship company of the M.P. Birla group, has taken an in-principle decision to expand its cement capacity by 1.5 million tonnes per annum.

This was announced by Mr Rajendra Singh Lodha, who chaired the company's 85th annual general meeting held on Friday.

This is the first time he has chaired the company's AGM after being elected Chairman at its last board meeting held on June 24.

Mr Lodha said the company, which recorded its highest turnover of Rs 1,342.64 crore in the last financial year, would try to remain on a "sustained growth track" and there is "no room for complacency".

"We are always trying to optimise our capacity through de-bottlenecking. We will continue to expand our operations," Mr Lodha told shareholders.

Regarding expansion, he said, Birla Corporation would add one million tonne clinker capacity at Satna in Madhya Pradesh and the cement capacity would be enhanced by 1.5 mt a year over a few phases.

He, however, did not say anything about the time frame or the cost of the project. According to him this would be decided later on by the board of directors but added that capacity augmentation would reduce the energy consumption of the plant.

At present, the company has almost completed setting up its two new power plants of 27 MW each capacity at Satna and at Chanderia in Madhya Pradesh. The total cost of these two projects is Rs 95 crore.

In 2004-05, net profit increased by 109 per cent to end at Rs 86.87 per cent against Rs 41.56 crore in 2003-04. Profit before tax jumped by 125 per cent to Rs 93.70 crore. Exports increased by 71 per cent to Rs 93.83 crore.

The company succeeded in reducing its annual interest outgo by 14 per cent to Rs 21.68 crore.

Senior Birla execs stay away

KOLKATA: Compared to the high drama witnessed in the last year's shareholders meeting, Friday's AGM turned out to be a tame affair, except for a couple of uneasy questions asked by shareholders.

Of interest is the fact that, unlike last year, none of the senior Birla executives were present. However, this did not stop Mr R.S. Lodha from making some comments on the Birlas.

First he requested shareholders siding with the Birlas not to make the AGM a forum for settling scores. Then, without naming anyone, he said attempts were being made to "needle" the company.

However, he assured all those present that he would take the company down the path laid down by "Pujya MP Birlaji" and "Bari Ma" (the late Priyamavada Birla).

Incidentally, Ms Nandini Nopany, daughter of Mr K.K. Birla, a director, was not present at the meeting; nor were the directors of the financial institutions. All the seven resolutions were, however, put to vote.

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