Mumbai : Binani Cement Ltd (BCL), flagship of the Rs 1,500-crore Binani Group, has submitted expression of interest (EoI) for a joint venture with National Aluminium Company Ltd (Nalco).
Nalco is scouting for a joint venture partner to set up a cement plant that uses fly ash generated at its captive power plant.
It aims to invest Rs 1,000 crore in the facility, which would have a capacity of producing 1,000 tonnes of cement per day.
Other cement majors including Gujarat Ambuja, ACC and L&T are also considering submitting EoIs for the JV, sources said.
A top Binani Cement official confirmed submission of the EoI. However, Vinod Juneja, joint managing director, refused to comment on the move.
Meanwhile, the company plans to set up a 2 million tonnes per annum plant (MTPA) greenfield cement plant at Kutch in Gujarat with an investment of Rs 500 crore. Juneja said, “More than 50% of the production from the Kutch plant will be for export to UAE. The 2 MTPA plant will start production in 2009.”
“We are expecting to cross the Rs 1,000-crore turnover by the end of current fiscal,” said Juneja.
Binani Cement plans to foray into other domestic markets in the near future. At present, its key markets are Rajasthan (12% marketshare), Haryana (5.7% share) and Delhi (4%) and Gujarat (6.4%).
Last Friday, it announced acquisition of 49% stake in a 4 lakh tonne cement plant in China for $11 million.
Analysts said cement manufacturers across the country were undertaking capacity expansions to meet the rising demand. About 100 million tonnes of additional capacity is likely to be added over the next five years.