Birla Corporation Ltd is looking to scale up its cement manufacturing capacity by over
60% to 25 million tonnes from the current 15.5 million tonnes with a total investment of around ₹5,000 crore in the next four to five years. The expansion would be partly
green-field and partly brownfield.
Birla Corporation Ltd along with its subsidiary, RCCPL Private Ltd, is having 10 cement
plants spread across the country,
The company has already commenced construction of the 3.9-million tonnes per
annum green-field project at Mukutban in Maharashtra, which is expected to be
complete by April 2021.
According to Pracheta Majumdar, Chief Executive Officer, the company is expected to
be a 25-30 million tonnes player. It will reach 25 million tonnes by FY25 and will add
another 5 million tonnes thereafter either through greenfield or an acquisition.
Birla Corporation is also setting up the second production line at Kundanganj in Uttar
Pradesh of 1.2 million tonnes to augment unit capacity to 3.6 million tonnes.
The expansion of the NCCW plant at Chanderia in Rajasthan has also begun.
It will add clinkerisation capacity of 4,80,000 tonnes which, in turn, can feed the
additional clinker needs of the Kundanganj grinding unit.
The company will also look to add another production line at its existing unit at Maihar
in Madhya Pradesh.
Prime Minister Narendra Modi met Finance Minister Nirmala Sitharaman and officials of
her ministry to find solutions to the economic slowdown that has eroded wealth and hit
jobs. Sources said the government might soon provide a broad stimulus package or a
sector-specific booster dose.
There might also be some relief to foreign portfolio investors from the super-rich
surcharge, announced in the Budget.
But, a cut in the goods and services tax (GST) on motor vehicles — one of the worst-hit
sectors — was unlikely, said sources, adding that the government believed the sector
was going through a cyclical downturn.
“The Centre will assess the potential revenue loss from any cut in the GST rate for four-
and two-wheelers before proposing it to the GST Council,” said a government source.
For the amendments to the Companies Act 2013 treating CSR non-compliance as a
criminal offence, the government is likely to go in for a change in position on this count.
The government had in the just concluded Budget session gone in for several
amendments to the CSR provisions under the company law including the aspect of
making CSR spend mandatory for Corporate India.
The High level committee on CSR recommendation of doing away with the penal
provision of imprisonment for non-compliance may find favour with the government.
The Committee report was submitted to Finance Minister Nirmala Sitharaman.
One thing is for sure — CSR spend will continue to be mandatory in India, but may only
be treated as civil offence in case of non-compliance.
Now all eyes are on the Corporate Affairs Ministry to see how it would provide legal
relief to India Inc and make such non-compliance related offences as a civil offence.
Warehouse leasing by corporates rose a healthy 31% Y-o-Y to surpass 13 million sq ft
during the first half of the 2019 calendar year, with Mumbai, Chennai and Bangalore
accounting for more than 60% of the activity. The demand during the period was mainly
driven by third-party logistics (3PL) players, followed by e-commerce companies.
Except the Delhi-NCR and Bangalore, all other cities witnessed a marginal growth in
leasing. In a few instances, tier II cities like Hosur (Tamil Nadu) and Vijayawada
(Andhra Pradesh) saw rise in leasing with large e-commerce players taking up 0.64
million sq ft and 0.15 million sq ft, respectively.
Jasmine Singh, executive director (advisory & transaction services) at CBRE India,
said: “It is quite interesting to note that key demand drivers of leasing activity in H1
2019 were 3PL (56%) and engineering & manufacturing (6%) firms. Domestic
corporates drove demand with a share of about 85% of leasing as compared to about
67% in H12018. We also witnessed new launches to the tune of about 15 million sq ft
by major developers.”
3PL firms are third-party logistics companies in the logistics and supply chain
management, which use third-party players to outsource distribution, warehousing, and
fulfillment services. The sharp rise in leasing activity by 3PL players like Delhivery,
Flyjack Logistics, DHL, Future Supply Chain and Kerry Indev Logistics was due to their
continued expansion across cities.
3PL companies were followed by e-commerce (9%) and retail firms (8%). E-commerce
players like BigBasket and Flipkart too leased space across cities. Corporates from
sectors like retail, auto ancillary as well as electronics & electricals too contributed.
On the sector’s outlook, CBRE chairman & CEO (India, South East Asia, Middle East &
Africa), Anshuman Magazine said, “We also expect logistics leasing activity to
strengthen owing to consolidation/expansion by occupiers. In addition, as per our
APAC Investor Intention Survey, 2019, India was among the top five investment
destinations in APAC. Industrial and logistics was also one of the top segments
expected to be targeted by investors in 2019.”
As per the annual report of Coal India Ltd (CIL), a total of 120 coal projects costing ₹20
crore and above are in different stages of implementation. Out of which 66 projects are
on schedule and 54 projects are delayed.
The major reasons for delay in implementation of these projects are delays in obtaining
environment clearance, forest clearance, possessions of land and issues related to
resettlement and rehabilitation, contractual issues and evacuation facilities among