Birla, Holcim jockey for top slot in cement

Holcim, the world's second largest cement producer, and the homespun Aditya Birla group, are jostling for the top slot in the Rs 60,000-crore Indian cement industry.

Between ACC and Gujarat Ambuja Cements, Holcim's total production capacity in the country stands at 35 million tonnes per annum, slightly above the Aditya Birla group's 34 million tonnes.

But the Aditya Birla group's count is all set to go up by four million tonnes as Century Textiles, with a four-million-tonne cement capacity, is expected to be transferred to its fold later. Kumar Mangalam Birla has already joined the Century Textiles board as additional director.

This will take Birlas' capacity to 38 million tonnes. Besides, there are indications that it may go up further. Century Textiles Chairman BK Birla has announced the setting up of a 1.5-million-tonne grinding unit in West Bengal for Rs 200 crore.

In April, the competition has intensified. In two separate announcements, Holcim cleared investments of almost Rs 1,500 crore over a year to up its capacities by 4 million tonnes "" 2 million tonnes in ACC and another 2 million tonnes in Ambuja Cement Eastern, a part of Gujarat Ambuja Cements.

This will take the Swiss cement maker's total capacity to 39 million tonnes per annum, a million tonne more than that of the Aditya Birla group.

Not to be left behind, Grasim, the flagship of the Aditya Birla group, will invest Rs 560 crore to double capacity at its Aditya Cement facility from the present 1.5 million tonnes per annum. Post-expansion, the group's capacity will aggregate 39.5 million tonnes per annum, which will help it overtake Holcim.

Experts in the industry said the Aditya Birla group was expected to announce further expansion in Grasim and UltraTech. Any more increase will ease it past the 40-million-tonne-per-annum mark.