Emami Cement drill

The cement arm of FMCG major Emami will ramp up production to 3.2 million tonnes per annum (mtpa) in 2017-18 and has lined up Rs 600 crore investment in a new manufacturing capacity in Odisha.

By Our Bureau in Calcutta
  • Published 1.09.17
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Calcutta, Aug. 31: The cement arm of FMCG major Emami will ramp up production to 3.2 million tonnes per annum (mtpa) in 2017-18 and has lined up Rs 600 crore investment in a new manufacturing capacity in Odisha.

The expansion, which includes building a 2mtpa unit at Jajpur in Odisha, will increase the annual production capacity of Emami Cement to 6 million tonnes. Emami's existing production units are located in Chhattisgarh and Bengal.

Vivek Chawla, wholetime director and CEO of Emami Cement, said the company is, at present, catering to markets in Chhattisgarh, Bengal, Jharkhand, Bihar, Odisha and parts of Vidharbha region selling close to 1.5-2 lakh tonnes per month.

"We are looking to increase the production and capacity utilisation with a target of 3.2 million tonnes in the current fiscal," said Chawla.

In Bengal, the company has invested Rs 600 crore in a 2mtpa grinding unit at Panagarh. Chawla said that sales in Bengal is, at present, clocking at around 50-55 thousand tonnes per month.

The company is planning to take this to around 1 lakh tonnes per month in another 3-4 months. An aggressive network expansion strategy in Bengal will help the company to increase sales.

"We are bullish about growth opportunities in the eastern market which is growing on a low base," said Vinit Kumar Tiwari, chief marketing officer Emami Cement

While the grinding units will currently source clinker from Chhattisgarh, Chawla said that the company had acquired lease of limestone mines in Rajasthan and Andhra Pradesh with deposits of around 300mt and 220mt, respectively.