CMCL to increase cement capacity

CMCL to increase cement capacity
Published: 20 July 2009

Cement Manufacturing Company (CMCL), a subsidiary of Kolkata-based Century Plyboards, will invest nearly INR1300 crore over the next two years to ramp up its cement capacity. Century Plyboards holds 70 per cent equity in CMCL.

“At present, our cement capacity is 1Mta and we have drawn up plans to scale up th-is capacity to 4Mt by June 2011,” Sanjay Agarwal, joint managing director of Century Plyboards told Financial Chronicle.

The capacity will be raised through two 1.5Mt cement grinding units – one each at Kahelgaon in Bihar and Guwahati in Assam.

In addition, Meghalaya Logistics, a 100 per cent subsidiary of CMCL, will be setting up a clinker unit at Lumshnong, adjacent to its existing plant. This plant will act as a feeder plant to Megha Techinical and Engineers, another subsidiary, in supply of clinker.

The unit at Kahelgaon will try to gain advantage of its location inorder to tap nearly 13 districts around the site. Clinker, the main raw material required for the grinding unit, will be sourced from the company’s cement plant at Lums-hnong. Other raw materials required are flyash and gypsum.

Agarwal said that the plant will not only make cement available readily within the state but it will also reduce the transportation time and cost of cement in Bihar.

The primary market for the production of the proposed unit in Kahelgaon will be Bihar, Jharkhand and North Bengal.