Published on November 9, 2016
1. Reliance Cement and Birla Cement
2. Birla Corporation Limited • Birla Corporation Limited is the flagship Company of the M.P. Birla Group. Incorporated as Birla Jute Manufacturing Company Limited in 1919. • Mr. Harsh V. Lodha is the present Chairman of the Company. • It has products ranging from cement, power and telecom cables, jute, healthcare and education. Cement constitutes more than 90% of the company revenue.
3. Birla Cement • The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M.P.) , Chanderia (Rajasthan), Durgapur (West Bengal), one at Raebareli (U.P.). • The cement is marketed under the brand names of Birla Cement SAMRAT, KHAJURAHO, CHETAK and Birla Premium Cement. • They manufacture varieties of cement like Ordinary Portland Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement (PPC) and other varieties of cement.
4. Reliance Infrastructure • Reliance Infrastructure Limited is a constituent of the Reliance Group, one of the leading business houses in India. It was incorporated in 2002. • Shri Anil Dhirubhai Ambani, is the Chairman of all listed companies of the Reliance Group. • The Reliance Group companies includes Reliance Infrastructure, Reliance Communications, Reliance Capital and Reliance Power.
5. Reliance Cement • Reliance Cement Company Private Limited (RCCPL) was established in 2007 as a wholly owned subsidiary of Reliance Infrastructure Ltd. • Reliance Cement has plants with total installed capacity of 5.8 Million Ton Per Annum (MTPA). Of these 2.8 MTPA is at Maihar in Madhya Pradesh, 2.2 MTPA at Kundanganj in Uttar Pradesh and 0.5 MTPA at Butibori in Maharashtra.
6. Birla cement acquires Reliance Cement • On 4th February 2016, Anil Ambani-owned Reliance Infrastructure, sold its cement subsidiary to Birla Corp for Rs 4,800 crore at a valuation of $140 a tonne. • The deal was sealed hoping to boost Birla Corp’s production capacity. • The flagship company of M P Birla group is still not amongst India’s top five cement companies.
7. • Reliance Infrastructure had consolidated debt of Rs 25,800 crore at the end of the last financial year and is selling several assets to improve financial health. • The group had announced plans to raise Rs 14,000 crore by selling cement and road assets by March 2017 • Selling Reliance Cement is the first step for making RInfra debt-free on a standalone basis.