Birla Corp plans spread and debottlenecking

Lodha breaks silence at AGM, vows to uphold Priyamvada Birla's vision .

Rajendra Singh Lodha yesterday broke his long silence, since the controversy over late Priyamvada Birla's will erupted, by sharing his plans with the media for the M P Birla group flagship, Birla Corporation, on the sidelines of its annual general meeting.

All seven resolutions placed before shareholders at the AGM were put to vote. Contrary to last year's AGM, which was filled with histrionics, the meeting passed off peacefully.

The resolutions were passed by shareholders, with 98.74 per cent present and voting in favour, including financial institutions and proxies. Lodha, now chairman of Birla Corporation, said the company has decided in-principle on taking up a project for debottlenecking and expansion of the clinker capacity by more than an additional one million tonne at Satna and cement capacity by a further 1.5 million tonne.

The expansion would be done in phases. On the investment, he said details were being worked out. The cement division of the company has crossed the five million tonne mark during the year.

Lodha's address to shareholders at the AGM was punctuated with reassurances that the vision of "pujya Madhav Prasadji" (late M P Birla) and "Badi Ma's" (late Priyamvada Birla's) would be upheld.

Announcing the expansion plan, Lodha said the company would grow and become stronger, despite uncalled disturbances from some people who may not be well wishers.

Lodha's speech was butted with comments on "disturbances" as he spoke about the performance of the company and said that it was possible regardless of pinpricks and disturbances from vested interests.

He addressed shareholders and said the AGM venue was not a political ground as it had no ideology except that the company should become stronger.

He reiterated his commitment to the company and said "Badi Ma's" wishes would be carried out. The future would be exciting for the company, he said.

The expansion plan comes close on the heels of the capital expenditure projects under implementation and would strengthen the company's position further in the cement industry.

Work for setting up two captive power plants of 27 MW each at Satna, Madhya Pradesh and Chanderia in Rajasthan was at an advanced stage and both the units were expected to be commissioned by next month.

This would reduce the power cost substantially. Work on the new cement plant, Durga Hitech Cement, was in full swing and the unit was expected to be commissioned shortly. Lodha said the company was also weighing the option of ready mix concrete.

K K Birla's daughter Nandini Nopany, director on the board of Birla Corporation, was conspicuous by her absence.