Century Textiles and Industries Ltd’s INR20bn (US449.9m) upgrade and expansion programme to increase cement capacity is expected to be complete by March 2013, the company said in its 2010-11 annual report.
The orders have been placed for the main plant and machinery for the 1.5Mta grinding unit at Sonar Bangla Cement at Sagardighi in West Bengal. The grinding unit is expected to be operational by September 2012. The total outlay is estimated at INR4.25bn.
Meanwhile, the expansion of 2.8Mta cement manufacturing capacity at Manikgarh Cement in Maharashtra will be operational by the March 2013, the company said.
The total outlay of Manikgarh Cement project is estimated to be about INR16bn.
After the ongoing upgrade and expansion, the total cement manufacturing capacity of the company will rise to 12.8Mta.
All the company’s cement units have operated at optimum levels and achieved capacity utilisation of about 98.74% compared with an average industry capacity utilisation of about 75%.
During FY11, the company has produced 7.702Mt of cement as compared to 7.583Mt in the previous year. However, due to unfavourable market conditions, the profitability of the cement division had been adversely affected, the company said.