Sanghi Industries to double TMT steel capacity

In spite of the rising steel prices, Sanghi Industries Ltd (SIL), a part of the Rs 3,500 crore Sanghi Group, is planning to go in for expansion of its TMT steel plant. The company will expand its TMT steel production from 200 tonnes per day (TPD) to 400 TPD in the next two years.

On the expansion plans, Alok Sanghi, Director, SIL said, "We will be expanding our TMT steel production from present 200 TPD to 400 TPD in the next one and half to two years." Sanghi, however, refused to divulge further information on the investments into the expansion.

Moreover, SIL is expanding its cement plant with an additional unit of 4.5 million tonnes per annum (MTPA) capacity, along with a 120 Mw captive thermal power plant at Sanghipuram, Kutch.

The company is investing around Rs 1,000 crore for cement plant - II, Rs 250 crore for the power plant and another Rs 250 crore for expansion of ports.

Sanghi said they are setting up port terminals in Navlakhi, Dahej, Mumbai, Mangalore, Karwar, and also in Rasalkhema, Iraq, Oman and Colombo.

"The purpose of setting up terminals in the country is to reduce freight charges," added Sanghi.

At present, the company owns a cement plant of 4 MTPA capacity as well as a 55 Mw captive thermal power plant. With the expansion, the total cement manufacturing capacity of SIL will be 8.5 MTPA which the company claims is the largest single-stream plant in the world.

Laying the foundation stone of the additional cement plant and thermal power plant, Chief Minister Narendra Modi said, "Sanghi Industries have managed to set up the world's largest cement manufacturing unit in Gujarat despite the lack of iron ore and other raw materials in the state."

Modi added that with companies like Sanghi preferring to set up plants in such backward regions like Kutch, there is a potential of another Rs 75,000 crore investment in the region.

Post-expansion, SIL which was ranked 9th in cement production across the country will become the third largest manufacturer of cement in the country. At present, Ambuja-ACC group ranks number one in cement manufacturing.

According to Alok Sanghi, SIL manufactures cement worth Rs 850 crore, of which cement worth Rs 350 crore are exported to West Asia and Africa.

The company is also looking for partners in Europe and South Asia. SIL has a market share of 70-80 per cent in bagged cement's global market.