Sanghi plans Rs 700 cr capacity expansion

Sanghi Industries Ltd (SIL), the cement manufacturing arm of the Rs 2,000 crore Sanghi Group, is planning to invest over Rs 700 crore to double the capacity of its state-of-the-art manufacturing plant in Kutch.

The plant, with a capacity of 4 million, was set up with an investment of around Rs 1,500 crore. it started the commercial production in March last year.

"We are planning to invest over Rs 700 crore to double the production capacity to around 8 million metric tonne. At present the annual production of Sanghi will fill over 80 million bags of cement," Hemant Pandey, senior president, SIL told Business Standard. The increased demand in the domestic and international markets has forced the company to go for a capacity expansion.

SIL is also planning to tap the export markets in a big way during this financial year. Over 40 per cent of the total turnover of the company comes from exports.

Last year SIL exported cement worth Rs 120 crore to countries like the UAE, Bangladesh, Sri Lanka, Spain, Guyana, Iraq, Kuwait, Qatar, Oman and Iran among others. With the increasing demand in the global cement market, the company is planning to hike the exports to Rs 200 crore in the current financial year.

"At Sanghi we produce the highest quality of portland cement. To do so, we have adopted state-of-the art technology that allows the production of cement on such a grand scale, without compromising on quality. Our plant boasts of the best infrastructure that easily overshadows the competition. The machinery is state-of-the-art , imported from countries that excel in technology," said Pandey.

Proximity to an international size captive jetty is one of SIL's advantages. The well equipped jetty, offers round the clock services and is capable of berthing 40,000 DWT vessels. Highly efficient loading systems ensures quick turn around of vessels.