HeidelbergCement to set up plant in Gujarat

German cement major HeidelbergCement will set up a greenfield plant in Gujarat with a capacity of 2 million tonne per annum. Heidelberg already has a capacity of 3.5 million tonne in India through its recent acquisition of Mysore Cement and joint venture with Indo Rama Cement. The investment and the site for the proposed greenfield plant is not disclosed.

According to Heidelberg study, the Indian cement market has grown about 8 per cent per annum. India is the second largest cement consumer in the world after China because of the large population growth and expansion of infrastructure coupled with development of construction activities.

With this new step, Heidelberg wants to further strengthen its presence on the west coast of India, a Heidelberg statement said. "Step-by-step, Heidelberg wants to achieve the stated objective of 10-15 million tonne capacity in India over three-four years by going for acquisitions, brownfield as well as greenfield projects,"said B Scheifele, chairman & CEO of the Heidelberg Group, when he was in India recently.

The euro 7.8-billion German major had recently acquired S K Birla group-managed Mysore Cements to gain access to the central and southern Indian markets.

In March 2006, Heidelberg concluded a 50:50 joint venture agreement with Indorama Cement for grinding plant.