Binani Cement to embark on expansion programme
Binani Cement Ltd (BCL), a Braj Binani group company, plans to double its capacity to 12Mta by FY11 and expand the capacity of its Chinese facility, a top company official said.
"As a part of our expansion plans, the company plans to double the cement manufacturing capacity from 6Mta to 12Mta by FY11 at an estimated cost of Rs 1,800 crore, which will be financed through debt and equity," Binani Group of Industries’ Deputy Managing Director Vinod Juneja told reporters here today.
"We have also received necessary approvals from the local Chinese authority to expand the capacity from 0.3Mt to 2.2Mt in the next two years at our facility in Shandong province in North China," Juneja said.
BCL is one of the leading cement manufacturers in India. It is focused on the key markets of states in northern India and Gujarat in western India. It also has a significant presence in Gujarat, Rajasthan, Haryana and Delhi markets. It has facilities for the manufacture of 2.25Mta of cement along with 25MW coal/lignite-based captive power plant at Sirohi, Rajasthan.
"In order to reduce freight costs, we are setting up the second grinding mill at Neem Ka Thana near Haryana and the adjoining NCR region. BCL’s second clinker unit commenced commercial operations from October 2007.
Trial runs are underway on the cement grinding unit at Binanigram in Rajasthan and the capacity will increase to 6Mta in the Q4 of FY08 " Juneja said.
Binani Cement has become the first Indian company to set up its cement production facility in China, in Shandong province. "Our Chinese plant has a clinker capacity of 0.5tpa and cement of 0.3Mta, which will be scaled up to 2.2Mta in the next two years. The limestone reserves in the leased mines would be sufficient to cater to the needs of over 50 years at extended capacities," Juneja said.
The cement produced in the Chinese plant will be sold in the booming domestic markets and also exported to the Middle East and East Africa, he said. Published under Cement News
