India’s ACC Ltd, a until of Holcim said Monday it is investing INR15bn to set up a 3Mta capacity cement plant in western India.
ACC expects to complete the project at Chandrapur in Maharashtra by the third quarter this year.
"We are also setting up a new captive power plant of 25MW capacity to cater to the project’s power requirement," Sumit Banerjee, ACC’s managing director, said in a statement.
"The project is expected to contribute significantly in servicing the growing market and strengthen our presence in the region," said Ramit Budhraja, chief executive for ACC’s operations in the southwest.
But analysts say the cement sector’s profit margins are likely to be squeezed in the medium term, as the industry copes with an oversupply scenario that is putting pressure on cement prices.