Somani Cement Company (SCCL) has bagged a Rs32 crore order from a Iraq-based multi-national company. The Vadodara-based company will export over 50,000t of cement and around 45,000t of clinkers by the end of the next financial year.
"The investment in infrastructure developments works in the Gulf region has led to a surge in demand for cement. With India’s close proximity to the Gulf region, most of the cement exports to the region are from India. We are also targeting the huge opportunity in the reconstruction of Iraq," Bimlesh Kumar Mishra, managing director, Somani Cement, said on Thursday.
The company is in the process of setting up a 1500tpd vertical shaft cement plant at Mahuva in Bhavnagar. Somani plans to have a technical collaboration with Associated Cement Companies (ACC) for the plant. ACC has already conducted the project viability study and selected the project site. Somani will purchase machinery and equipment worth over Rs 65 crore for the cement plant from Cimco Birla.
Somani manufactures and trades in portland cement and lime pozolone cement. It plans to market the product under the brand ‘Somani Cement’. The company reported a cumulative loss of Rs 20 crore in the last financial year. It, however, plans to turn to profits in the next two year. Different banks, foreign institutional investors (FIIs), and insurance companies have five per cent stake in the project. Punjab National Bank (PNB) recently acquired a 4.35 per cent stake in the company and Morgan Stanley has 0.5 per cent stake.