Sanghi plans capacity expansion for Kutch plant

Sanghi plans capacity expansion for Kutch plant
Published: 27 January 2005

With full capacity utilisation, coupled with increasing demand from the overseas markets, Sanghi Industries Ltd, part of the Sanghi Group, has decided to go for a massive capacity expansion at its cement plant in Kutch, Gujarat with an investment of over Rs 1000 crore in two phases. The company, as a first step, has decided to expand its capacity from 2.6Mt to 3.6Mt in the next few months, and then increase it further to 7Mt in the next two years with an investment of over Rs 1000 crore, said Ravi Sanghi, managing director of Sanghi Industries. "The demand for cement is very high and is growing substantially.

We decided to go for debottlenecking by expanding our capacity in a massive way." Mr Sanghi noted. "We decided to take up the expansion in phases and accordingly the company will expand to 3.6Mt in the next six to eight months with an estimated investment of Rs 100 crore and will be further expanded to 7Mt in the next two to three years." 

Mr Sanghi said. "Ours is a premium brand over others and has been well received by the local market. We believe that Sanghi Cement will continue to get good market exposure apart from increased demand from export markets," he said. Of the total capacity, Sanghi is exporting 50 per cent to countries in Middle East, followed by Spain, the US and Bangladesh. "We have been getting a large number of export enquiries. However, our capacity is not sufficient to meet their obligations and we hope the proposed expansion will enable us to export more," Mr Sanghi concluded.