ACC to invest Rs 610 cr in MP

The Associated Cement Company Ltd (ACC) is planning to set up a cement plant in Madhya Pradesh and also expand the capacity of its unit. The company is likely to make investments of Rs 400"�450 crore over three years in the new plant and an investment of Rs 160 crore in capacity expansion.

The company's plant at Kymore in the Rewa district has a capacity of 2.2 million tonnes per annum. The plant manufactures pure portland cement and pozlana cement.

"We have sought permission for additional mining lease from the state government to set up a new plant in Katni with an investment of about Rs 450 crore. The plant will be 60 km from our Kymore plant," said Ravindra M Bhardwaj, joint president, ACC Kymore.

The company has a refractory in Katni to meet its requirements for firebricks. The new plant will support the unit.

Bhardwaj said, "The first phase of expansion at our Kymore plant is being implemented. The second phase of the Rs 160"�crore expansion will be completed next year. With the completion of the project, our Kymore plant's capacity will touch 3.9 million tonnes per annum."

The company has sought permission for a capacity expansion of 1.8 million tonnes from the state government. The new plant at Katni will have a captive thermal power of 15 MW.

"The expansion will be for the domestic market, which is growing significantly, and after three years it will have a firmer position in the market. Once the state government gives nod to ACC for the additional mining lease, we will be able to complete the project within three years," Bhardwaj said.

A company executive said its cement sale in August grew 5.59 per cent to 1.246 million tonnes from 1.18 million tonnes in the same month last year. Cement production in August was up 3.3 per cent to 1.211 million tonnes, from 1.172 million tonnes over August 2003. Cumulative cement dispatches during April"�August 2004 grew 6.09 per cent to 6.651 million tonnes from 6.269 million tonnes during the same period last year.

Cement production in the April"�August duration 2004 was 6.686 million tonnes, up 6.02 per cent from 6.272 million tonnes the company recorded in the same period last year.

According to the Cement Manufacturers Association of India, of all the states in the country, cement consumption recorded the highest growth of 17 per cent in Madhya Pradesh during the first quarter of the current financial year.