Assam-based Barak Valley Cements (BVCL) plans to set up a 6000tpd cement manufacturing facility in either Orissa or Jharkand. The Rs 52-crore company has applied for lease of limestone mines to both state governments and will finalise its gameplan shortly.
BVCL’s director Mahendra Agarwal told reporters here on Wednesday that the proposed facility will entail a Rs 700 crore investment. “We are undertaking a project feasibility study and exploring the option of roping in a strategic partner,” said Mr Agarwal.
The company expects to finalise the location for the proposed plant in 3-4 months. “We will freeze plans once we get lease for the limestone mine. The project will help us expand our market in eastern India,” said Mr Agarwal. He, however, refused to divulge details.
BVCL has finalised a Rs 45-crore expansion plan which includes a 6MW biomass-based captive power plant and increasing capacity from the present 450 mtpd to 650 mtpd at its existing facility near Silchar.
“This expansion plan will be implemented by May. Though we initially planned to undertake this exercise last year, we postponed it to this year due to delays in finalising details,” said Bijay Garodia, chairman at BVCL. The company, which had also shelved its IPO plans, will revive the initiative soon to finance the proposed expansion.
“As we’ve decided to execute the project, the IPO route will be taken to raise Rs 40-45 crore by diluting promoters holding from 100% to 75%. We have recently filed the necessary documents with Sebi,” said Mr Garodia. The company is promoted by three north-east entrepreneurs — P R Chamaria, B K Garodia and SK Bajaj.
At present, BVCL sources its requirement of limestone from captive quarries in Meghalaya. It intends to concentrate on the northeastern markets and claims to command 30% marketshare in both ordinary Portland cement and pozolon Portland cement.