Nepal billionaire plans new Sri Lanka factory

Nepal's first Forbes billionaire, Binod Chaudhary, plans to set up a state-of-the-art cement plant in the high growth-market of Sri Lanka.

Quoting a statement issued by Chaudhary's office, the Daily Mirror said in its online edition that Chaudhary has submitted a proposal to the Sri Lankan government to set up a cement plant in the Jaffna Peninsula at a cost of US$75m.

According to the press statement, Chaudhary expressed confidence that Sri Lanka is on the threshold of a dynamic phase of growth in spite of several challenges that he believes, must be faced. According to local press reports, he already has an estimated US$200m of investments in the country, including projects underway and proposed.

Cement consumption in Sri Lanka has maintained a strong upward trajectory since its civil war ended some four years ago. Strong economic growth continues, driven by large-scale reconstruction and development projects. Cement consumption has typically grown by over 15 per cent annually over the recent past and last year demand rose by 14.4 per cent to 5.24Mt. Growth of around 13 per cent is expected in 2013-14.

The Chaudhary Group has also invested in a cement factory at Dambak Deurali in the Nepali district of Palpa which can produce 1100tpd of cement.