Sagar plans 1Mt plant in Tanzania
Sagar Cements, a mid-sized Andhra Pradesh-based cement company, is planning a 1Mt plant in Tanzania.
The expansion to foreign shores comes soon after it signed a joint venture with a cement major Vicat SA for setting up a 5.5Mt cement plant in Gulbarga in Karnataka.
Sources say the company is yet to decide whether the venture will be a partnership or whether they will do it alone.
However, the Tanzanian foray is still at a preliminary stage, sources said. Company officials declined to comment.
The Tanzanian foray would be the first time an Indian cement company is venturing there. ACC has some exposure in Saudi Arabia.
The move will help Sagar to derisk its business. The company is yet to decide whether to enlist a foreign strategic partner. The company, in addition to taking the proposal to the board, also needs to tie-up funds for the African foray.
Recently, the company entered into a 49:51 joint venture with Vicat giving the French major a majority stake.
In addition to the Tanzanian foray, the company recently had announced a plan to set up a 5Mt cement plant in Oman.
The cement plant is expected to come up close to the Gulf coast. This will enable Sagar to export cement to even India, if required.
If Sagar’s expansion plans fructify, the company will have cement production capacities of about 7Mt each in India and abroad.
Published under Cement News
