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In India, the Birla Corp. posted an increase in its net profits from July to September of this year. According to Reuters, the company believes the rise is related to “higher cement sales and lower fuel prices.”
Furthermore, Reuters reports the company's boost in profits are from “improved realization in the cement division, higher sales coupled with softening of fuel prices and reduction in various costs, contributed to higher profitability.” The quarter netted a profit of 1.52 billion rupees, while net sales reached 5.06 billion rupees. This time last year, net profits were only at 597 million and net sales equaled 3.71 billion rupees, which marked a 36% increase in sales.
With the recent increase in net profits, the company has plans of expansion, including a new cement plant and increasing cement capacity at an existing location. The increase in capacity will allow the Kolkata plant to improve from 5.8 million tons to 9.3 million tons per year.
The new plant, which will be located in Madhya Pradesh, will have a capacity of 3 million tons of cement per year. The plant will be under Birla Corp.'s subsidiary, Talavadi Cements Ltd, and will require “a total investment of 12 billion rupees.”
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