Jindal Vijaynagar Steel Ltd (JVSL) was weighing the option of entering into new businesses.
Sajjan Jindal, managing director, said JVSL was examining the prospects of setting up a cement plant in partnership with some other company.
Initially the plant would have a capacity of 2 lakh tonne, which would be increased to 1 million tonne.
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The business model being considered was that, the partner would make the bulk of investment and market the products under the brandname and share profits with JVSL. JVSL would also make some investment in the venture.
Jindal said to have a plant of 1 million tonne capacity, the cost of the project could be around Rs 100 crore.
However, Jindal clarified that the project was still in the preliminary stages and no formal discussions with other companies had been held so far.
The idea of setting up a cement plant stemmed from the fact that JVSL was already generating around 50,000 tonne of high quality granulated slag which was currently being sold to various cement manufacturers.
Hence the value addition appeared to be significant to the company