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Aditya Birla group - largest cement maker of India
Review On Aditya Birla Group

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Aditya Birla group - largest cement maker of India
Jun 28, 2007 05:40 PM 17798 views

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The much awaited finally happened. At the AGM of Century Enka, the patriarch of Indian corporate world, Basant Kumar Birla, referred to fondly by those in the know as B K Babu, announced the eagerly anticipated news – of his grandson Kumaramangalam Birla taking over the reins of his companies.


The 87 years old doyen still retains the same zeal and enthusiasm, which could put a young man of today to shame. Still reporting to office everyday by 8.45 in the morning and working till 4.30 in the late afternoon, the grandfather clearly wanted his grandson to take charge.


It was a known fact in the corporate circles that almost all the B K Birla group companies were to be bequeathed to Kumaramangalam. The B K Birla group of companies includes Century Textiles, Century Enka, Kesoram Industries, Manjushree Plantations, Jayshree Tea, Mangalam Cement, ECE Industries and Mangalam Timber Products.


As per the plans earlier revealed, Kesoram Industries was to go to B K Birla’s younger daughter, Manjushree but surprising everyone, he said that now even Kesoram Industries would go to Kumaramangalam as it made more sense for him to get Kesoram which has a cements division which could give synergistic advantages to Kumaramangalam’s Grasim and Ultra Tech. Now this is clearly a case of the interest (grandson) being more favourable than the principal (daughter)!


This inheritance of Kesoram Industries will indeed give a lot of synergistic advantages to the Aditya Birla group.  Lets take a quick look at the dynamics of Kesoram Industries and the cement units in Aditya Birla group – Grasim and Ultra tech.


Kesoram Industries has got interest mainly in cement, tyre, heavy chemicals, rayons and spun. More than half the revenues of Kesoram come from its cement division.  It has two cement manufacturing units – one is Kesoram Cement, located in Andhra Pradesh which has a capacity of 1 mtpa and the other unit is Vasavadatta Cement and it is located in Karnataka and this unit has a capacity of 3.65 mtpa. The company is expanding the capacity in Vasavadatta by 1.5 mtpa with a captive power plant at a capex of Rs.450 crores. Based on this, one can say that Kesoram Industries will bring to Aditya Birla’s fold a cement capacity of around 6.15 mtpa.


Then there is Mangalam Cement also. The company manufactures ordinary portland cement and pozzolana portland cement by the dry process, and has its plant at Morak, district Kota, Rajasthan. The company is planning to incur a capital expenditure of Rs 70 crores to enhance its cement capacity to 2 million MTPA. The company’s 17.5 MW power plant for captive consumption is ready to be commissioned any time now.


So, Aditya Birla group gets a cement capacity of 6.65 mtpa, barring the expansion plans at Kesoram and Mangalam. And if we consider the expansions plans also the inherited cement capacity would stand at 9.15 mtpa.


Now a look at Aditya Birla group’s cement capacity. Currently, the Aditya Birla Group is the 11th largest cement producer in the world and the seventh largest in Asia and Ultra Tech and Grasim together, make it the largest cement producer in India.


The group mainly has two cement units – Grasim and Ultra tech.


UltraTech Cement Limited, a Grasim subsidiary has an annual capacity of 17 million tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana Cement. It has five integrated plants. This also includes the integrated plant and two grinding units of the erstwhile Narmada Cement Company Limited, a subsidiary, which has been amalgamated with the company in May 2006.


Grasim, on the other hand, manufactures grey and white cement. In grey cement, the company has the capacity to manufacture 14.20 mtpa. This includes Grasim’s capacity of 2.06 mtpa, Vikram Cement 4.2 mtpa, Aditya Cement 1.5 mtpa, Rajashree Cement 4.2 mtpa, the acquired and merged Dharni Cement 1.16 mtpa and the acquired Digvijay Cement 1.08 mtpa.


Grasim and Ultra Tech together have a cement capacity of 31.20 mtpa. And when the B K Birla cement companies also come into the fold, the Aditya Birla group would have a cement capacity of 37.86 mtpa, making it clearly the largest cement maker of India.


Well, the grandfather has ensured that his grandson retains the numero uno position as the largest cement maker in India.



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Comments on Aditya Birla Group Review

hi ruma,

nice review..well good length..but i ddint get the spaces in between...well good review ..

keep writing

cheers
ajay

By: Burning_desire | Jun 28, 2007 05:52 PM

Very good cement

By: ranjay275 | Jan 02, 2016 01:49 PM

Thanx for review

By: nitingupta327 | Feb 15, 2016 06:49 PM