Sanghi Industries to focus on logistics

Sanghi Industries Limited (SIL), the Hyderabad-based Rs 3,500-crore conglomerate is focusing on strengthening its logistics requirements.

SIL has two terminals in the pipeline at Dahej and Navlakhi Port. It is also engaged in negotiations with the Kutch Railways for an extended rail connectivity and exploring the sea route transportation option, through their own jetty.

The logistic plans are being firmed up in support of company's decision to expand its production capacity. The group has already chalked out expansion plans for increasing its cement manufacturing capacity from 3.3 million MTPA (metric tonnes per annum) to 10 million MTPA.

Speaking to Business Standard, Aditya Sanghi, vice president (corporate affairs and manufacturing), emphasised the importance of logistics in cement business. "Cement business primarily runs on two equally balanced factors such as power and logistics. So with our plans to increase production, after having additional 5.7 million MTPA manufacturing facility plugged-in at our existing Kutch unit, our efforts to strengthen outward logistics are also being made.

"With our increased manufacturing strength, we are planning to enter the markets of Maharashtra, Karnataka, Goa and Kerala, for which we will explore the water route. We already have captive jetty with necessary infrastructure to deliver the required quantum. We are also looking to enter the Mumbai market in a very big way and so water route would be a suitable option for outward logistics," added Sanghi.

Keeping in view the present freight scenario and the increasing fuel prices, the group prefers to explore marine transportation system to enter the markets.

"We have also identified a couple of ports to carry out our business activities, which mainly includes Mumbai, Kochi and Goa as part of out pan-India strategy," claims Sanghi.

SIL, which claims 49 per cent market share in the Kutch region, is also planning to acquire two terminals at Dahej and Navlakhi port.

Sanghi claims that the current market share in Gujarat ranges somewhere between 13-15 per cent and with these new facilities in place they would be able to cater better to southern and central Gujarat markets to increase the share to 15-18 per cent.

"SIL has already explored marine transportation option with a couple of cargos of 30,000-40,000 MT at Jamnagar and Porbandar ports and few shipments sailed to international destinations. After this experience, we foresee hassle-free operations," said Sanghi.

Though SIL exports mainly to Iraq and European circuit from Kandla Port, it is planning to go in for an optimum usage of its captive jetty.