India: Sanghi Industries INR12bn expansion

Sanghi Industries Ltd is planning to further develop its capacity following the 1.2Mta expansion of its plant in Kutch district. Production capacity at the Kutch plant recently rose to 4.1Mta.

For the second phase of capacity augmentation, Sanghi Industries is looking to raise INR12bn (US$180.6m) to further increase capacity to 8.1Mta. The company is also seeking to establish a 15MW WHR system, expected to come online in two years. “Around [INR12bn] investment has been envisaged for the expansion, which is expected to be over in next three to four years,” said Alok Sanghi, director of Sanghi Industries.

With the cost of transportation playing a key role in determining the cost of cement, Sanghi Industries is actively looking at utilising the sea route to ship cement from its Kutch plant. The firm already operates a 1Mta captive jetty in Kutch, transporting cement to its existing terminals at Navlakhi, Rajkot district, and Dharamtar, Mumbai. Sanghi is working towards developing a further terminal at Surat for servicing the South Gujarat market. It is also looking to build two ship for transportation as at present it charters vessels.