Reliance positions itself for market upturn, India

Reliance positions itself for market upturn, India
Published: 20 December 2011

Reliance Cement is planning new capacity and scouting for new locations that the company says will pay off once the demand improves in 2013-14.

In an interview with Business Standard of India, Sumit Banerjee vice chairman of Reliance said the company is setting up two 5Mta plants: one in Madhya Pradesh and the other in Maharashtra “The physical work at the MP plant has begun; it will start at the Maharashtra one in another six months. They will commence commercial operation by 2013 and end-2014 respectively,” Mr Banerjee noted.

The company is also establishing a grinding plant at Butibori near Nagpur, which will be connected with the Maharashtra plant. “We are bringing the grinding plant early, so as to couple it with the fly ash and power from the next door sister company, Reliance Power. It will start generation by mid 2012. The Butibori plant will also get commissioned and start kicking supplies in the Vidharbha market by the middle of 2012,” Mr Banerjee highlighted.

The company also has plans to set up plants in other parts of India. Mr Banerjee said: “We are interested in Bengal, as it is the gateway to the markets of eastern India. Plus, there is a huge infrastructure gap in this area. We expect consumption demand in this region to grow significantly in the near future. We have given our proposal to WBIDC [the state’s industrial development corporation]. We are awaiting the government’s approval. It will be a grinding unit, as there are no limestone reserves in the state but fly ash and slag are readily available.”