The Reliance Anil Dhirubhai Ambani Group (ADAG) is entering the cement business by announcing its plans to set up a 5Mt integrated plant and a grinding unit in Maharashtra with an investment of INR2250 crore.
Reliance Cementation, a part of the Ambani group, on Friday signed a memorandum of understanding (MoU) with the Maharashtra government. The cement unit will come up in Yavatmal district, while the grinding plant will be set up in Nagur district.
The MoU was signed nearly a year after the Ambani group made its intention to enter into the cement business. The group also has hired Anil Singhvi, former managing director of Ambuja Cements, to spearhead its cement business.
Last year, the group chairman, Anil Ambani, said that the entry into the cement sector was a "natural progression" of the group’s business. The group had said that its cement companies would use fly ash that comes out of its power plants as raw material. At Reliance Natural Resources’ annual general meeting in September last year, Mr Ambani said that the group had plans to set up a plant with nearly 20Mt capacity in four to six years.
Source: The Economic Times