Asansol-based cement maker Burnpur Cement has drawn up plans to invest Rs 10,000 crore over the next 7-8 years. The company plans to increase cement grinding capacity from the current 0.3Mta to 10Mta, foray into steel manufacturing and real-estate business.
Announcing this at a press meet here on Monday, Burnpur Cement’s vice-chairman and managing director Ashok Gut-gutia said the group may undertake diversification activities through separate companies. "The idea is to expand into related areas to achieve economies of scale. However, the details are yet to be worked out," he said.
The group is already setting up a 1 mtpa cement grinding unit and clinker plant at Jharkand at an outlay of Rs 121 crore for the first phase. It also plans to expand capacity at its grinding plant in Asansol from 0.3Mta to 1Mta. "Additional cement grinding plants will be set up in Bihar, Uttar Pradesh and Nepal to increase capacity to 10 mtpa," said Mr Gutgutia.
"Currently, we are able to run the Asansol plant at about 55% capac-ity utilisation since clinker supply is too erratic. This also takes a toll on our margins. The proposed clinker plant at Jharkand will help us to cut down cost of production by nearly 30-35%," Mr Gutgutia said.
Burnpur Cement is also setting up a 50 MW power plant in the second phase of the Jharkhand project. "This will entail an investment of about Rs 250 crore. For the moment, we have entered into an agree-ment with Damodar Valley Corporation to supply power to the plant," said Mr Gutgutia. While the Asansol plant now manufactures portland slag cement, the proposed Jharkhand unit will produce ordinary portland cement and portland puzzolana cement.
"Once we expand our product portfolio, we can then aim for a pan-India presence," Mr Gutgutia said. The company primarily sells its cement in West Bengal, Jharkand and Bihar.