Birla Corporation, the Rs 2,160 crore revenue flagship of the MP Birla group, announced the setting up a 1 million tonne cement plant. It has signed a memorandum of understanding with the Assam government, to set up a plant at Umransu in the North Cachar Hills district. The project cost will be Rs 450 crore and will be implemented through a joint venture.
Cement is the company’s main business, with an 86% share of revenues, while jute and power each contribute 5%, and others account for the rest. At present, the cement industry is facing a glut of capacity, as new plants have come on stream in several parts of the country. Birla may be setting up this plant in anticipation of future demand. Assam may also be an attraction to industrialists, due to tax-related incentives from the state and central government available for new industrial units in the state.