Birla Corporation Limited announced that its wholly-owned subsidiary, RCCPL Private Limited, has successfully commissioned the third production line at its Kundanganj grinding unit in Uttar Pradesh. This expansion adds 1.4 million tons (mt) to the capacity, bringing the consolidated production capacity to 21.4 mt. The total investment for this phase was approximately Rs 300 crore, and further expansion to 27.6 mt is planned by 2028-29.
Third Production Line Operational at Kundanganj
Birla Corporation Limited confirmed that its wholly-owned subsidiary, RCCPL Private Limited, has commissioned the third production line at its Kundanganj grinding unit located in Uttar Pradesh on Monday, March 23, 2026. This key expansion scales up the production capacity by an additional 1.4 million tons (mt).
Capacity Growth and Financials
Following this commissioning, Birla Corporation Limited’s consolidated production capacity now stands at 21.4 mt. The company reaffirms its earlier commitment to further expand this capacity to 27.6 mt by 2028-29. The estimated capital expenditure for the Kundanganj expansion phase totaled around Rs 300 crore.
Economic and Operational Impact
- The 1.4-mt increase in grinding capacity is anticipated to create nearly 100,000 direct and indirect jobs in the region.
- This move strengthens the company’s market competitiveness within its core markets in central and eastern Uttar Pradesh.
- Additional clinker needed for operations will be sourced from the company’s integrated units located at Satna, Chanderia, and Mukutban.
- The company is also investing in state-of-the-art technology at Kundanganj to maximize the use of fly ash in producing Portland Pozzolana Cement (PPC).
Commitment to Sustainability and Infrastructure
In support of the expansion, peripheral infrastructure, including road and rail connectivity, is being upgraded. Furthermore, the factory is setting up a 5-MW solar power plant, expected to be commissioned in the second quarter of the next fiscal year. Once functional, the share of renewable power in the Kundanganj unit’s total consumption will rise from just over 30% to around 40%.
For this capital expenditure, the company will receive investment promotion incentives linked to Goods and Services Tax for 12 years.
Broader Growth Strategy
Birla Corporation Limited previously announced plans, alongside RCCPL, to scale up the production capacity of the Maihar unit and establish three new grinding units. These measures aim to reduce lead distance and solidify the company’s leadership position in high-growth markets. Birla Corporation Limited, the flagship of the MP Birla Group, currently operates 10 cement plants across eight locations, boasting an annual installed capacity of 21.4 million tons.
Source: BSE
