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Birla Corporation Ltd will increase its annual cement production capacity to 30 million tons (mt) by 2027, said Chairman Harsh V Lodha of the Birla Group at the annual general meeting of the Company today.

This is a new target set for the company, which had earlier said it would raise its production capacity to 25 mt by 2025.

Birla Corp's current production capacity is 15.6 mt , which the company said will go up to almost 20 mt by the end of the current fiscal year, when its greenfield 3.9 mt plant at Mukutban, near Nagpur, is commissioned.

"Plans are afoot to reach a target of 30 mt by 2027," Lodha told shareholders, adding that details of the plans are to be announced when they are firmed up and approved by the Board.

"The aggressive expansion plan is reflective of the Company's improving profitability and cash flow," the company said in an exchange filing.

Birla Corp has also said it will expand in markets where the company has an edge over competition and demand for cement is projected to get stronger.

Compared with legacy assets of the Company, new plants are going to be more efficient and profitable, it said.

Lodha said the plants of RCCPL Pvt. Ltd (the erstwhile Reliance Cement Co. Pvt. Ltd which was acquired in 2016), subsidiary of Birla Corp, are among the best in India judged by operating parameters.

Even as the company seeks to grow aggressively and faster than the industry average in the past few years, we will "as a policy, remain conservative" on borrowings, Lodha added.

On Wednesday, Birla Corporation stock has gained nearly 3% to close at 1,354 on NSE.

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