India's Birla Corporation plans to expand its cement capacity over the next three years involving an investment of INR25bn to raise capacity from 9.3Mta to 13.8Mta.
Harsha Lodha, chairman of the Birla Corp told the Times of India: "Some of the money would be invested in the company's already announced projects like the 3Mta cement plant at Talavadi, 1.5Mta unit at Chanderia and 1Mta plant in Assam, and also in some other projects yet to be formally approved by the board." The Assam project is in collaboration with Assam Mineral Development Corp. "All these new capacities will generate a revenue of around INR16bn" Lodha added.
However, the company has decided to put the breaks on a project in Ethiopia – its first overseas venture – due to a glut in the market created by excess capacity
In terms of the current slowdown being witnessed in the Indian market, Mr Lodha believes that the worst is over for the economy and demand will pick up: "India infrastructure is a long-term story and that is why we are adding capacities," he said.
