Calcutta, May 21: Reliance Cement Company Pvt Ltd has ventured into Bengal by entering into a buyback arrangement with a Durgapur-based grinding unit.
The Anil Ambani-owned company, with its headquarters in Mumbai, hopes to obtain about half a million tonnes from Ma Chandi Durgapur Cement Ltd in Durgapur to serve the eastern market, especially Bengal.
Atul Desai, chief marketing officer of Reliance Cement, said the company had the option to buy the plant from the owners of the year-old firm.
The transaction, completed a few months back, is a precursor to Reliance’s plan to build a 2.1-million-tonnes grinding unit in Purulia.
Desai, however, did not put a timeline to when this project would be completed as several approvals, both from the state as well as the Centre, were pending.
The company, has, however, received 100 acres and the possession of the land for the Purulia project.
The cement market in Bengal is about 14 million tonnes per annum and is growing 8 per cent a year, according to Reliance.
Desai said the model followed in Bengal, where Reliance takes over the sales and marketing of a small local player, could be replicated in other parts of the country.
“There are several small local players who do not have the capacity to brand. We have the brand,” Desai said.