Gujarat-based Sanghi Industries is set to enter Mumbai, the largest cement market in the country. The company is planning to launch its cement brand - Sanghi Cement - in the city towards the end of this month. Hemant R Pandey, senior president, Sanghi Industries, said, “We have been planning to enter the Mumbai market for sometime. We think that the time has come now. We are planning a soft launch in the city in a week.” The company is planning to bring around 30,000t of cement a month to Mumbai, which records total cement sales of above 200,000t per month month. “We will be pricing at par with the leading cement brands in the city,” Pandey said.
In the past Sanghi has been criticized by market leaders in Gujarat for selling at lower prices to garner market share. A leading cement stockist in Mumbai said, “Sanghi’s entry in the Mumbai market will not make much of a difference to the overall price level as there is enough demand.” Sanghi is planning to set up ready-mix concrete (RMC) business in the next six months, “We are exploring the possibility of setting up a RMC line near Ahmedabad in the next quarter. Along with this we are also planning to manufacture PPC grade of cement in the coming two to three months.”
The company had already lined up an investment of Rs 700 crore for an expansion plan to double its capacity to 8Mta. Sanghi had set up a 4Mta plant in Kutch in March 2003. Currently the company exports over 100,000t of clinker every month to the Middle East. “There is a huge demand for cement and clinker in the Middle East. This has also pushed export prices,” Patel said.
