Alok Sanghi, Director, Sanghi Industries Ltd, is a Business Management Graduate from Indiana University, USA. He looks after corporate and strategic affairs of the company and has explored several international markets for cement exports
India’s Sanghi Cement plans to build a cement plant in Kenya for about Rs 500 crore in collaboration with local firm Cemtech to supply to the south Sudan market. The plant will have an initial annual capacity of 600,000 tonne.
Over 80 percent small cement producers have closed their units in Gujarat owing to competition from major players and rising raw material prices. Unable to survive amidst competition from bigger players, 80 units have closed their plants in the past six months.
Cement maker Sanghi Industries, which started off as a predominantly export-driven company, has turned its focus on the domestic market. It has put in place a turnaround strategy that involves wiping out its debt level, which is around Rs 750 crore at present.
Sanghi Industries, which owns the 2.6 mtpa lignite-based cement plant in Gujarat, has operationalised a 63 MW captive power plant and a sea terminal in Navlakhi Port, Rajkot district. Since energy and logistics incur maximum costs for the cement business, the plant and terminal will help improve efficiencies and cut costs. The company is currently serving Gujarat, Rajasthan, Madhya Pradesh and Maharashtra and plans to expand in the central and western regions and coastal states.
Sanghi Industries plans to invest Rs 275 crore in the next 18 months on upgrading logistics and removing bottlenecks at its Kutch plant. This move is a part of its efforts to be a debt-free company in two to three years. The company is expected to invest Rs 150 crore on acquiring ships and setting up new jetties or terminals.