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Binani Cement Limited inks MOU with Gujarat Government

Ahmedabad, January 13, 2009 :Binani Cement Limited, one of the trusted quality brands of India, has signed a memorandum of understanding (MOU) with Gujarat State Government today to set up a Greenfield cement plant of 2.5 MTPA capacity in Gujarat. The MOU was signed by Mr. Vinod Juneja, Managing Director, Braj Binani Group, on behalf of Binani Cement Ltd and by Mr. Raj Gopal, Commissioner – Mines & Geology on behalf of the Gujarat State Government. Mr. R. H. Joshi, Executive Vice President, Binani Cement Ltd were also present. The capacity of this Greenfield cement plant is 2.5 MTPA. The proposed plant location will be at Lodhva village in Sutrapada District of Junagadh. The land requirement for proposed plant is 188 hectares and for mining 1532 hectares. The plant will manufacture ordinary Portland cement (OPC), Pozzolona Portland cement (PPC) in various grades and the production of OPC to PPC will be ordinarily 50:50. This strategically located plant will be mechanically completed by December 2010 and the commercial production will commence from April 2011.

This association between the Binani Cement Ltd and Gujarat State Government will help in upliftment of social infrastructure, general standard of living of people in Gujarat and development of area and employment generation in the state of Gujarat.

The project is estimated to cost Rs. 825cr. The excise duty and the Sales tax for the plant is estimated to Rs. 66cr and Rs. 78cr respectively, at 100% capacity utilization per annum. Binani would also be required to the pay Rs 17cr per annum as the Royalty & Cess on Limestone to the Gujarat Government.

Limestone, the primary raw material will be outsourced from proposed captive mines located around the villages Lodhava, Singsar, Barevala JTiardi and other adjoining villages, contiguous and within a distance of 3-5 km. The reserves are estimated at about 120-160 MT possible category and would be adequate for the proposed plant for 30 years. Other raw materials like Sandstone, Latertic Iron Ore, Gypsum and Fly Ash are available locally. The power requirement by the plant will be met with a captive power plant of 30 MVA.

The Cement from this Binani plant will be supplied to the markets in Gujarat, Maharashtra and Middle East.

About Binani Cement Limited

Binani Cement is the flagship subsidiary of BIL, the Braj Binani Group – a Rs 1500 crore cement major with subsidiaries in Dubai and China. The company manufactures and markets Ordinary Portland Cement and Pozzolona Portland Cement under the “Binani Cement” cachet, which enjoys premium status amongst major Indian cement brands and leads in markets of Rajasthan, with significant market share in northern and western India as well. In 1997, the company commenced operations in Sirohi District, Rajasthan, after setting up a 1.65 mtpa integrated cement facility and a 25 MW captive power plant with technological support from F. L. Smidth, Denmark and Larsen & Toubro Ltd. The company is certified as ISO 9001, ISO 14001 and OHSAS 18001 compliant within a short span of commencement, an achievement that clearly illustrates the management’s commitment to quality, efficiency, and the environment.

Binani’s Strengths

Vertical and horizontal growth has long been a part of the company’s mission. Complementing the brown field facility at Sirohi, Rajasthan, a split grinding unit at Neem Ka Thana has been recently commissioned to boost capacity to 6 mtpa. And with the installation of two additional power plants the company is all set to achieve a power capability of 69.6 MW, which should make the company 100% self sufficient in power.

Binani’s resources

When increased production and power capacities are balanced by adequate raw material resources long-term growth is assured. The company’s limestone reserves at Amli and Thandiberi total 195 MnT, which are enough to last 30 years.

Binani’s global thrust

Binani Cement has reached beyond Indian borders to explore growth opportunities in neighboring countries. Binani Cement Factory LLC, a subsidiary operating in Dubai for the past 10 years, has a current capacity of 1.2 mtpa. However, with plans for expansion already in place, the output of the plant should reach 2 mtpa in the near future. Another subsidiary – Shandong Binani Rongan Cement Company Ltd (SBRCCL), in China – got rolling just over a year ago, but already operates at close to 100% capacity. With further expansion planned, the plant can confidently expect to see its capacity rise to 3 mtpa, fuelled by an investment of US$100 million. With infrastructure development continuing at a steady clip, the company’s future as a cement producer is as solid as cement itself. Anticipating growth, the company is in the process of strengthening its pan-Asia presence in the coming decade through efforts on various fronts.

Binani – Exploring possibilities

To achieve higher energy efficiencies, the company has made a move to mine lignite at Nimbri Chandawatan. Exploration has already begun and operations will commence in 2009 to provide this vital fuel for the 75 MW captive power plant. 

Binani – Expanding capacities

An investment of US$ 150 million in a new 2.5 mtpa Greenfield cement plant near coastal Gujarat, India has been planned while an additional US$ 120 million will go towards increasing the combined capacity of the plants in China and Dubai to 5 mtpa in the next two years.

Binani’s Exports

Supported by clinker from our Gujarat plant BCF, LLC, Dubai will continue to explore local markets, as will the plant in China (while delivering clinker to Gulf markets and cement to Africa). In the near future the company hopes to establish a significant presence in East African markets and extend its reach in Gujarat and Maharashtra in India. It anticipates capacity touching 15 mtpa by 2011.