Birla corporation It is a company of M.P Birla Group. The Co is engaged in the manufacturing of cement of various kinds and also has a presence in the jute goods industry. [1]
Product and Brand Offerings
The company manufactures different types of cement like OPC Cement, 43&53 grades, PPC cement, fly ash-based PPC, Low Alkali Portland Cement, and Portland Slag Cement, among other categories. It provides cement under the following classifications:
Popular Cement: Chetak, PSC & Samrat
Premium Cement: Unique, Ultimate, Ultimate Ultra, Perfect Plus & Samrat advanced
Institutional Cement: Concrecem & Multicem
Wall putty: MP Birla Perfect plus wall putty
Construction chemicals: IWP & SBR latex [1] [2] [3][4]
Revenue Mix FY23
Cement: 95%
Jute: 5% [5]
Geographical Diversification
The company derives about 50%-60% of its sales volumes from Central India dedicated to 9.35 MTPA of cement capacity in the region, followed by the Eastern region i.e. 19%-23%, and the Northern region 15%-17%. [6]
Distribution Network
The company has a distribution network of more than 300 sales promoters, 9800 dealers, and 37500 sub-dealers which supports the on-ground sales of BCL’s products. [6]
Production capacity
The Company and its subsidiary, RCCPL Private Limited, have 11 cement plants spread in eight locations across the country, with an annual installed cement capacity of 20 million tons. [7]
Jute Goods capacity is 52,600+ Metric Tons and Iron & Steel Casting capacity is 3,750 Metric Tons[8]
Acquisition of Reliance Cement Company Pvt Ltd
The company acquired Reliance Cement Company Pvt Ltd in August 2016 for an enterprise value of 4800 Cr. This added 3 more manufacturing plants and increased the cement production capacity to 15.6 MTPA. [8]
Mukutban Plant
The company commenced cement production at the 3.89 MTPA Mukutban plant in May 2022, increasing the total cement production capacity to 20 MTPA.[6]
** Ongoing Expansions
In FY22, Birla Corporation announced a 30 million ton capacity target by 2027.** [9]
Cost Optimisation
To optimize cost, the company is increasingly ramping up consumption of renewable power and extraction of coal from the Sial Ghogri captive coal mine (Coal mine of RCCPL). [10] The company commissioned WHRS unit in Mukutban which was largely operational from Q4FY23 which is expected to reduce power costs for the plant from FY24 onwards. [6]
Focus
The focus of the company is primarily on shoring up sales of premium cement, which accounted for 51% of total sales in FY23 through trade channels. [11]
Disclaimer
Previous Post