Ambuja Eastern Cement Limited (ACEL), which made a spectacular turnaround after being taken over by Gujarat Ambuja Cements, has announced to invest Rs 115 crore for setting up a 1Mta grinding plant at Farakka in Murshidabad for capacity expansion. The new unit would utilise fly ash produced from National Thermal Power Corporation’s (NTPC) super thermal power plant located in the region, ACEL Managing Director Harshvardhan Neotia told reporters here. Neotia also said clinker would be sourced from company’s Bhatapara plant in Chhattisgarh while some part of the requirements would be procured from ACC.
The company, named ACEL after take over of Modi Cement by Gujarat Ambuja Cement Limited (GACL) through Board for Industrial and Financial Reconstruction (BIFR), plans to fund the expansion plan largely through internal accruals. "The debt market may be tapped if required," Neotia said.
Neotia said the Farakka plant would meet the demand of north Bengal, the North-east region, and Bihar. According to him, the market share of the Ambuja group in the eastern region was around 7.6 per cent. Asked whether there was any plan to merge ACEL with GACL, Neotia said that there was none at the moment. He said that Farakka plant would increase the company’s market share in West Bengal.