GNG Group, one of the leading business conglomerates dealing in international trading, mining and power projects in Eastern India, is foraying into the cement industry.
Announcing the latest venture of the group - Green Valliey Industries Limited, which is setting up a one million ton per annum, integrated cement plant in Meghalaya, G N Agarwal, Chairman GNG Group said here on Wednesday that the group will be investing Rs 450 crore for setting up the plant. In the first phase Rs 250 crore have already been invested.
The plant will be producing the OPC 43, OPC 53 and PPC cement. It will supply to seven States of North East India.
The market size of cement in the seven states of North East India is approximately 4-4.5 million ton per annum with average annual growth rate of 9-10 per cent per annum.
He said that the group is actively evaluating opportunities to set up a few grinding units in North East India and is also working to have some strategic alliances with thermal power stations in West Bengal and Bihar to set up a few cement grinding units near their plants.
According to Agarwal, with a turnover of Rs 500 crore last year, the projected group turnover will be around Rs 700 crore after the commissioning of the cement plant, which is expected to generate Rs 200 crore of business in the first year. He said that the plant will be ready by the first quarter of 2010.
“We are developing a prospective plan for the group’s cement business which calls for investment to the tune of Rs 1500 crore in the next 5-6 years,” he added.