Ambuja Cements today announced capacity expansion of its Sankrail grinding unit in West Bengal to 2.4 million tonnes at an investment of Rs 325 crore but said its over 3 million tonne greenfield integrated cement plant in Rajasthan is yet to get some crucial approvals.
Ambuja Cement, part of global cement major Holcim, has already firmed up 0.9 million tonne grinding capacity augmentation in West Bengal at Rs 325 crore, a statement said.
This plant was originally commissioned in 2000 and has established a strong footprint in the region.
Ambuja will also add 1.5 million tonne a year at Gujarat besides a one million tonne bulk terminal at Mangalore to improve distribution.
West Bengal Industry minister Partha Chatterjee said Ambuja also planned to set up a third unit at Bandel in Hoogly district.
Ambuja already has a 1.25 million tonne grinding unit at Farraka in West Bengal.
However, in Rajasthan, Ambuja Cement CEO Ajay Kapur said today the company is still waiting for some approvals, including environment clearances.
Kapur did not rule out delay in the project, which the company had earlier planned to commission by FY14.
Ambuja business head SN Toshniwal attributed the delay to pending regulatory clearances.
Land remained another issue for the company, but it would not be a hurdle for the project, Kapur said.
"We have most of the land required for the project," he said without detailing the requirement.
Kapur said a typical cement plant needed about 1,000 hectares.
Toshniwal said the company was planning a 3.25-3.5 million tonne mother plant at Rajasthan. Along with new grinding units in the northern region, total capacity would go up to five million tonnes.
Total investment could range between Rs 1,800-2,000 crore in the Rajasthan project.
Kapur said currently, the company's capacity was 27.25 million tonnes and it was growing at CAGR (Compounded Annual Growth Rate) of 15%.
Nationally, Ambuja Cement has a marketshare of 10% and would at least maintain the same over the next few years when the industry is growing at 6-8% annually.