Vasavdetta Cement, part of Kesoram Industries Ltd is putting up an additional nine-mega watt capacity thermal power plant to supplement its existing 15.7 MW captive power plant at its facilities to bring down operating costs. The company is also taking up a number of de-bottling measures to take up annual production capacity from the current 1.2Mt to 2Mt this year, Mr KC Jain, Senior President told local reporters. Mr Jain said the company will also consider putting in additional capacity for cement depending on the demand supply position in the market which he said is currently very strong.
"A combination of factors including a boom in construction, the golden quadrilateral and other infrastructure projects and the announcement of elections, which has hastened infrastructure projects, has resulted in an increase in demand for cement," he said. The prices will remain healthy as the demand is likely to be around for some time, he added. The cement industry, which has been in the doldrums for the last couple of years is also benefiting from the perked up demand from export markets according to Mr Jain. Companies, especially those with factories along the coast, are making large-scale exports, he said. Talking about the company’s strategy for growth in the future, Mr Jain said it is now in the process of expanding its marketing network in rural areas where consumption of cement has been on a sharp rise.