Birla Corporation had signed a deal with Reliance Infrastructure whereby it took over its cement production unit (RCCPL) for Rs 4,800 crore at a valuation of $140 per tonne* in 2016. RCCPL had three cement units: an integrated cement plant in Maihar (Madhya Pradesh) ) and milling units in Kundanganj (Uttar Pradesh) and Butibori (Maharashtra) — with an aggregate capacity of 5.58 million tons per year of cement and 3.30 million tons of clinker. With the Mukutban plant and the elimination of bottlenecks, the total capacity under the RCCPL units comes to 9.81 million tons, versus the operating capacity of 10.19 million tons in the holding company, which includes plants in Satna, Chanderia, Durgapur and Raebareli.
Arvind Pathak, Managing Director & CEO, Birla Corp , shares more about the Mukutban plant, its technological advancement and why the plant in Maharashtra was planned in talks with Shriyal Sethumadhavan.
The factory is equipped with the most modern technology. It works for 100 percent on its own electricity, which will give us a cost advantage in the long run. We also opted for an air-cooled condenser where we try to save the water needed to cool fuel gases in the factory. The entire transport system is done by means of belts. We have no mobile equipment and the gammametry check helps us to build up the stock. We opted for a roller compactor, the most efficient mode for this type of raw material. Every equipment we have used is the most efficient in the country or maybe in the industry around the world.
A significant portion of the cost is primarily due to fuel and power. Electricity is also nothing but coal. With the rise in coal prices, the war in Ukraine, the amount of coal we need and the power crises in our country, the only silver lining we see is that we already have one coal mine. We expect to launch another one before the end of the year. This is a testing time for us for the next six to seven months. Once these two coal mines are up and running, we will cover 40 to 50 percent of our fuel needs.
We have one of the largest product bouquets in the industry. Since we have been selling in Maharashtra for quite some time, we know the requirements of the state. What we offer today is superior to other products within the same bracket available in the market. What we bring to the customer is value for money.