Sanghi Industries pens Rs 1,000 cr spread plan

Sanghi Industries Ltd, a part of the over Rs 2,000 crore Sanghi Group, will invest over Rs 1,000 crore for debottlenecking and expansion of its cement plant at Kutch.

The company will be investing over Rs 700 crore to expand the capacity of its cement plant to over seven million tonne per annum from four million tonne.

"The four million tonne per annum capacity plant was set up at an investment of around Rs 1,500 crore. The plant, which started commercial production in March 2003, is by far the largest single stream plant in the world. The company is planning to more than double the production capacity of the unit to around seven million tonne per annum," said Hemant Pandey, senior president, Sanghi Industries.

The company also plans to double its turnover to Rs 600 crore by utilising the optimum production capacity of four million metric tonne of the plant by the end of the current financial year as compared with two million tonne in last fiscal. The company had posted a turnover of Rs 300 crore in last fiscal, a source said.

"At present the annual production of Sanghi comes to over 80 million bags of cement. The full utilisation of our capacity will help us to double our turnover," said Pandey.

The company is also eyeing to enhance export revenues to Rs 200 crore by the end of the current financial year as compared with Rs 120 crore in last fiscal. At present over 40 per cent of the turnover of the company comes from exports.

The company exports cements to countries such as the UAE, Bangladesh, Sri Lanka, Spain, Guyana, Iraq, Kuwait, Qatar, Oman and Iran.

It is targetting a growth of over 30 per cent every year in the next 10 years as compared with the industry growth of around 10 per cent per annum.

On its marketing plans, Pandey said, "We have recently entered the Maharashtra market and planning to consolidate our presence in the domestic market apart from enhanced exports. Sanghi cement is sold at a premium of Rs 2-15 over other leading brands in the country. We aim at capturing a bigger market share. Our expansion plan also includes setting up of Sanghi consumer care centre across various places."

The advantage of this facility is that a consumer can avail of all relevant information relating to housing and construction under one roof. Even we provide mobile van service, whereby any consumer can get an on-the-spot compressive strength test to choose the best quality cement."