Zuari Cement to tap new markets

Zuari Cement, a wholly owned subsidiary of the ¤6 billion Italcementi Group, plans to enter Maharashtra, Orissa and West Bengal after its capacity expansion in 2008.

The company has two units located in Andhra Pradesh (Yerraguntla and Sitapuram) with a combined 3.5 million tonnes capacity, which is being doubled.

While 2.2 million tonnes are being added at the Yerraguntla unit, the Sitapuram unit will see a hike of 1 million tonne. Zuari is also putting together a captive power plant of 43 mw at the Sitapuram unit with a ¤30 million investment.

"Once the expansion is complete in 2008, we will be adding 3.2 million tonnes to the existing 3.5 million tonnes and this gives us additional capacity to enter newer markets by setting up full-fledged operations," said Krishna Srivastava, director, marketing.

This expansion is a part of the ¤200 million investment that Italcementi Group committed during 2001 in India. The global firm entered India by acquiring Zuari Cement's Yerraguntla unit during 2001 and the subsequent acquisition of Sri Vishnu Cement in 2002.

Srivastava claimed that Zuari has a 6.5 per cent market share in the south Indian cement market, which in 2006 consumed 47 million tonnes. For the record, total cement consumption in India is at 150 million tonnes.

On the exports front, Srivastava said that in 2005-06, the company was able to export a portion of its production, but would not be able to export this year with the domestic demand going up.

The company, recently launched its high-strength cement (grade 53) under the brand name Primo Concrete Cement in Bangalore market.

This new cement grade improves the density of the concrete matrix and increases the durability of the concrete. For this, the company is eyeing residential and commercial constructions and infrastructure projects such as dams, canals, highways, roads and flyovers.

Zuari Cement has clocked sales of about ¤116 million in 2006 and has set a target of ¤150 million in 2007 banking on new product launches in key markets.