Guwahati, Feb. 10: The entry of Dungsam Cement Corporation Limited (DCCL) — a Royal Government of Bhutan undertaking — into the Northeast, is being closely watched by the cement sector here.
Dungsam Cement Corporation Ltd, which has the country’s biggest cement plant, today announced its entry into the Indian market with its brand Dragon and will focus its business mainly in the Northeast.
Other than the Northeast, it will also focus on north Bengal and east Bihar.
The plant is located at Nganglam in eastern Bhutan, nearly 150km northwest of Guwahati.
The managing director of the company, Dorji Norbu, said considering Bhutan’s huge production capacity and the relatively small market, the company intends to sell about 70-80 per cent in the Indian market, a majority of which will be in the Northeast.
The cement plant produces 4,130 metric tonnes of cement daily.
“We are all watching the entry of Bhutan company into the market keenly. The company’s prices will have to be looked into,” Jyoti Agarwal, the president of Star Cement, told The Telegraph.
The company is a subsidiary of Cement Manufacturing Company Ltd.
Bajrang Lohia, the director of Topcem Cement — the brand name of Meghalaya Cements Ltd — said there is already an oversupply of cement against demand in the Northeast.
“We will have to watch out closely for their strategy,” he said.
Dungsam Cement Corporation Ltd plant started its commercial operation from January 1 this year and obtained necessary licence to market its cement in India from the fourth week of January.
It was incorporated under the company’s Act of Kingdom of Bhutan in 2000.
It is a wholly owned subsidiary of Druk Holdings and Investments (DHI), an investment arm of Royal Government of Bhutan.
Dungsam Cement Project (DCP) was initiated by the Royal Government of Bhutan in 1982 with Rs 300-crore assistance from India.
“One of the primary advantages for us will be the saving of transportation cost of cement. The transportation cost of a cement bag into the Northeast from our mainland is Rs 150 per bag whereas it will be only Rs 25-30 per bag for us. Quality will be the buzzword for us,” said Rajiv Khanna, sales and marketing in-charge, India, for DCCL.
“We will match the local prices of cement in Assam,” he said.
A company official said DCCL distributors can enjoy the locational advantage to transport cement because of its proximity to the market.
Those who lift cement from Dungsam plant to Guwahati can be transported via trucks directly to the godowns or can be transported via rail from Pathsala.
Pathsala is 50km from the factory in Bhutan.
“The Northeast is fast evolving into an international trade hub for Southeast Asian economies with regional players exporting cement to countries like Bangladesh and players across the border coming into the region,” Madhur Agarwalla, the director, Surya Gold Cement, told The Telegraph.
