Binani Cement to set up unit in Gujarat

Binani Cement Ltd, a subsidiary of Binani Industries, promoted by Braj Binani, will be setting up its new cement manufacturing plant in Saurashtra region of Gujarat in 3-4 years.

The new plant, to be set up as part of the company's expansion plans, will bear a capacity of over three metric tonnes per annum (MTPA) and will include a captive jetty too.

The company, presently, has one plant in Sirohi, Rajasthan and the new plant in Gujarat will be its second.

Binani Cement, which manufactures both OPC and PPC types of cement, will be investing over Rs 700 crore.

"As part of our expansion plans, we will be setting up a new cement plant of a capacity of over 3 MTPA in Saurashtra region of Gujarat within the next 3-4 years. Alongwith with it, we will also be setting up a captive jetty and the total investment would be over Rs 700 crore. We will also be setting up two or three more such plants in some of the eastern states later," said D Sundararajan, Executive Director, Binani Cement.

Recently, the company expanded its plant capacity at Sirohi in Rajasthan from 2.25 MTPA to 5.3 MTPA at a cost of Rs 575 crore. Binani Cement has also applied to the Gujarat government for the mining lease, said Sundararajan.

Sundararajan added that the company also plans to begin production of Ready-Mix Concrete (RMC).

"We had set up an RMC plant at Sirohi but it was utilised later for cement only. But now we intend to first shift the plant to either Gujarat or Gurgaon and then begin production of RMC from it. The installed capacity of RMC at the plant is around 60 cubic metre per hour," said Sundararajan.

The company intends to double its plant capacities and increase its footprint to almost all states except in southern India in the next 2-3 years.

Although, presently Binani Cement focusses only on domestic market, with its new cement plant at Gujarat the company intends to export 50 per cent of the output.

For fiscal 2006-07, the company had a turnover of Rs 780 crore and expects to double it in fiscal 2007-08.

Meanwhile, Binani Cement is also entering the capital market with a public offer to raise around Rs 174 crore through an offer of sale of 20.5 million shares of Rs 10 each by JP Morgan Special Situations (Mauritius) Ltd, the company's selling shareholder.