Sanghi Inds to focus on domestic mkt

To set up terminals at Dahej, Navlakhi in Gujarat.

An appreciating rupee, coupled with a strong demand from domestic market, has forced Sanghi Industries Limited (SIL) to rethink its business strategy.

The cement major, which exports nearly 50 per cent of its produce, is now looking at tapping the domestic market in a big way. Part of the Rs 3,500-crore Sanghi Group, SIL exports to countries in Africa and West Asia.

"Competition is becoming stronger and investments in the sector have gone up. With the increasing number of projects being announced in the country, the demand for cement has shot up in the domestic market, bringing about the desired realisation. Though we will continue to export, we would now look for new domestic markets like Maharashtra, Karnataka and Kerala," said Alok Sanghi, director of Sanghi Industries.

SIL currently supplies cement to markets in Gujarat, Rajasthan and Madhya Pradesh. To consolidate its local distribution network, it is putting up terminals at Navlakhi and Dahej in Gujarat, Mumbai, and Mangalore and Karwar in Karnataka.

"With the sea logistics being more efficient and cheaper than road transport, bulk of our cement will move by sea to the domestic markets," Sanghi said. The cement industry will not see any price hike for at least six months despite the rise in input costs, he added.

SIL is also expanding the production capacity of its cement plant at Sanghipuram in Kutch, from the present four million tonne per annum (MTPA) to 8.5 MTPA, which the company claims is the largest single-stream plant in the world.

Last year, the company registered a turnover of Rs 857 crore from its cement business, of which exports accounted for 45 per cent.