Cement manufacturers eye expansion in eastern India
Cement

Cement manufacturers eye expansion in eastern India

The cement industry is now eyeing capacity expansion in eastern India with most players investing in this region.

Shree Cement has announced a Rs 600 crore investment in West Bengal to establish a cement grinding mill. UltraTech is adding nearly 7 mt to its existing base of nearly 120 mt.

After acquiring Jajpur Cements, Sagar Cements is expected to expand its capacity in the region.

Nuvuco Vistas, owned by Nirma, made the most ambitious venture when it bought out two existing businesses Lafarge and Emami for Rs 14,900 crore, giving them a capacity of 19.5 mt.

For the fiscal year 2012, the total installed capacity in the East was 50 million tonnes per annum (mtpa), while the total national capacity was 350 mt.

The lack of a housing boom, combined with an insufficient focus on infrastructure, did not contribute to its growth.

From a total base of 537 mt, capacity has increased to 111 mt in FY21.

By some margin, it is the second-largest region by pecking order. West and Central are both at 71 mt, whereas North is at 104 mt. The South is the largest at 181 mt.

Increased demand will provide companies with more pricing power or the ability to pass on price increases to consumers.

Rashesh Shah of ICICI Securities predicted earlier this year that cement capacity in the east would reach 131 mt in FY23, based on a national base of 587 mt.

It states that despite capacity additions, utilisation levels in the east (central and north) are expected to remain above 80% until FY23.

Image Source


Also read: Cement industry targets 80 mt capacity addition in next 3 years

Also read: Ambuja Cements to add 20 mtpa capacity at Rs 10k cr

Also read: Ramco Cements plans Rs 636 cr capacity expansion in Tamil Nadu

The cement industry is now eyeing capacity expansion in eastern India with most players investing in this region. Shree Cement has announced a Rs 600 crore investment in West Bengal to establish a cement grinding mill. UltraTech is adding nearly 7 mt to its existing base of nearly 120 mt. After acquiring Jajpur Cements, Sagar Cements is expected to expand its capacity in the region. Nuvuco Vistas, owned by Nirma, made the most ambitious venture when it bought out two existing businesses Lafarge and Emami for Rs 14,900 crore, giving them a capacity of 19.5 mt. For the fiscal year 2012, the total installed capacity in the East was 50 million tonnes per annum (mtpa), while the total national capacity was 350 mt. The lack of a housing boom, combined with an insufficient focus on infrastructure, did not contribute to its growth. From a total base of 537 mt, capacity has increased to 111 mt in FY21. By some margin, it is the second-largest region by pecking order. West and Central are both at 71 mt, whereas North is at 104 mt. The South is the largest at 181 mt. Increased demand will provide companies with more pricing power or the ability to pass on price increases to consumers. Rashesh Shah of ICICI Securities predicted earlier this year that cement capacity in the east would reach 131 mt in FY23, based on a national base of 587 mt. It states that despite capacity additions, utilisation levels in the east (central and north) are expected to remain above 80% until FY23. Image Source Also read: Cement industry targets 80 mt capacity addition in next 3 years Also read: Ambuja Cements to add 20 mtpa capacity at Rs 10k cr Also read: Ramco Cements plans Rs 636 cr capacity expansion in Tamil Nadu

Next Story
Infrastructure Energy

GAIL to Set Up Bengaluru CBG Plant Under New Concession Pact

GAIL (India) Limited has signed a 20-year concession agreement with the Bengaluru City Municipal Corporation (BBMP) to set up a compressed biogas (CBG) plant in the city. The project, expected to produce around 10 tonnes of CBG daily, will utilise municipal solid waste as feedstock, contributing to clean energy generation and efficient waste management. The CBG produced will be used in GAIL’s City Gas Distribution network to promote cleaner fuel usage. The initiative aligns with the government’s Sustainable Alternative Towards Affordable Transportation (SATAT) scheme and GAIL’s broader ..

Next Story
Infrastructure Energy

Uttarakhand HC Lifts 31-Year Ban on ONGC’s Contractual Hiring

The Uttarakhand High Court has lifted a 31-year-old ban on the Oil and Natural Gas Corporation (ONGC) from hiring contractual workers, a restriction imposed in 1993. The decision enables ONGC’s Dehradun establishment to employ personnel on a contractual basis to meet operational requirements. The long-standing prohibition had limited ONGC’s ability to fill vacancies in its technical and administrative departments, often leading to project delays and higher dependence on outsourcing. With the court’s directive, the public sector enterprise can now proceed with temporary recruitments whil..

Next Story
Infrastructure Energy

JSW Energy’s Utkal Unit Bags 400 MW, 25-Year Power Supply Deal

JSW Energy Limited announced that its subsidiary, JSW Energy (Utkal) Limited, has secured a Letter of Award (LoA) from Karnataka’s Power Company of Karnataka Limited (PCKL) for the supply of 400 MW of electricity for 25 years. The agreement is part of a competitive bidding process for long-term procurement of power to meet the state’s growing energy demand. The 400 MW capacity will be supplied from JSW Energy’s upcoming thermal power project in Odisha. This development strengthens JSW Energy’s presence in the southern market and aligns with its strategy to enhance long-term contracte..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?