Sanghi aims to up cement capacity

Sanghi Industries (SIL), the Andhra Pradesh-based Rs 3,500 crore group, is all set to increase its cement capacity at Motiber Village in Kutch (Bhuj) in Gujarat.

The company plans to increase its present production from 3.3 million metric tonne per annum (MTPA) to 10 million MTPA by expanding the Kutch unit and setting up a new plant in Andhra Pradesh.

Aditya Sanghi, vice-president, corporate affairs and manufacturing, said, "Our manufacturing facility in Kutch produces 3.3 MTPA cement, which we are likely to extend by another 5.7 Million MTPA by 2009. This will make us make us a 9 MTPA manufacturing facility in Kutch itself." The add-on manufacturing complex in Kutch is likely to be functional by 2009, he added.

"Another unit of 1 million MTPA is in pipeline at Dadri in Andhra Pradesh, totalling our strength to 10 million MTPA. We are one of the world's largest single-plant manufacturing facility. With our increasing strength we are confident of catering to the booming demand of cement across the domestic and international market," added Aditya.

Shailesh Jha, deputy general manager, sales, said, "The cement industry is growing at compound annual growth rate (CAGR) of 9 per cent and demand of cement consumption is growing at 8 per cent CAGR with consumption of 135 million MTPA registered in 2005-2006. Of this, 12 per cent consumption growth was registered in 2005-2006. Again Indian GDP growth rate is likely to be above 7 per cent, expected cement growth is likely to be 10 per cent with momentum to continue in infrastructure sector, as a result we expect a increase of cement demand in the coming days."