Sanghi Industries to invest in logistic improvements, debottlenecking, India

Sanghi Industries to invest in logistic improvements, debottlenecking, India
Published: 01 July 2013


Sanghi Industries plans to invest in the upgrading of its logistics and removing bottlenecks at its Kutch plant to drive down debt.

Company director Alok Sanghi said the company will invest INR150 crore to acquire ships and setting up new terminals. Meanwhile, INR125 crore will be spent on removing bottlenecks, according to reports by Business Line India. Mr Sanghi added that the company would focus on fuel cost reductions, improved logistics and debt reduction.

The company is currently developing a terminal in Mumbai which, once operational, will package and market cement in Maharashtra, saving around 12 per cent of logistic costs. It is also looking to set up similar jetties and packaging and marketing centres in Goa and Kochi, Mr Sanghi noted.

The removal of bottlenecks at the Abdasa plant in Kutch will increase grinding capacity from 2.6Mta to 3.3Mta.

To reduce fuel costs by 10 per cent, Sanghi Industries reversed the blending of fuel to 80 per cent coal and 20 per cent lignite by importing coal from Indonesia last year.

The company is modifying its marketing strategy to include neighbouring states such as Rajasthan and Maharashtra for better capacity utilisation and margin expansion. It is also eyeing states along the west coast.