Birla Corp plans foreign venture plant in Ethiopia likely

With the ban on limestone mining at its Chanderia unit in Rajasthan since August last year still affecting Birla Corporation’s cement business, the flagship firm of the M P Birla group, is now exploring the possibility of foreign ventures.

The Kolkata-based cement-to-jute manufacturer may come up with its first plant abroad in Ethiopia, where it has formed a wholly-owned subsidiary, Birla Corp Cement Manufacturing Plc. It has already got licence for limestone mining and applied for a coal mining permit in the east African country.

“We have formed a subsidiary to apply for the necessary licences. Once we get a coal mining permit, we will study the market to decide on the next course of action,” Chairman Harsh V Lodha told reporters on the sidelines of the annual general meeting of the company.

He said, the company was also exploring possibilities in other regions. However, he refused to share the details.

The company is contemplating a legal move against a stay on limestone mining operations at Chanderia

“We are sourcing raw materials from other sources for Chanderia cement plant. This has affected our profitability,” Lodha added.

The company is contemplating a legal move against a stay on limestone mining operations at Chanderia in Rajasthan.The company expanded the Chanderia unit’s capacity by 1.2 million tonne (mt) in March this year, but has not been able to utilise the entire capacity.

Meanwhile, during the AGM shareholders demanded a poll on all the six proposed resolutions including reappointment of H V Lodha as chairman of the company, after a four-and-a-half hour long deliberations on the accounts and corporate governance issues.