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Binani to increase presence in West Bengal

Introduces Premium Quality Cement for Eastern markets

Kolkata, March 19, 2009 :After the roaring success in the Northern & Western markets Binani Cement Limited, the flagship company of Rs. 2500 crores Braj Binani Group today announced its foray into the eastern markets of West Bengal with the introduction of its Premium Quality Cement OPC 53 grade.

Binani Cement Premium Quality OPC 53 grade is the most premium product and will be available to the customer in 50 Kg. bags with the “BIG B” logo on the bag. The quality of this product not only conforms to the stringent BIS standards but surpasses them by a great extent. The cement bags will be transported through rail, which is relatively cheaper, to a hub in Burdwan, West Bengal. This hub will be the major road distribution point for South Bengal including Kolkata & Greater Kolkata, Durhapur, Asansol, Bankura and Purulia. As the market expands, individual city dumps will be created, keeping in view the customer requirement & logistic aspects.

According to Mr. Vinod Juneja, Managing Director,“Binani roots are firmly embedded in West Bengal and dates back to 1872 when the company first established itself as a trading company in the import and export of ferrous and non-ferrous metals. Over the years the company has evolved into a large diversified industrial conglomerate, Binani sentiments are attached to this city of Kolkatta which is its home town. We have always been looking forward to increasing our presence in Kolkatta and today with our 6 mtpa capacity cement plant at a single location we have been able to achieve, economics of scales making it viable to increase our presence in the fast growing West Bengal markets”

Further adding Mr. Juneja said “The average current consumption for OPC grade cement in West Bengal is 6.5 lakh MT per month but actual demand seems higher, demand will only increase in the coming years and this will be met by us by increasing our product availability across West Bengal. This will not only benefit the customers due to economies of scale but also West Bengal as we plan our foray to other Eastern states”

Today, the West Bengal Market is mainly dominated by blended cement (PSC & PPC). With the demand for OPC always increasing, requirement of ready mix concrete plants, specialized Civil Projects, Projects with Batching plants (where Fly ash & slag are used as additives), road projects, pre – cast factories creates a good demand, but low availability of OPC in the region forces these buyers to compromise on quality of end products. Binani Premium Quality OPC 53 grade is undoubtedly a superior product and our strategy in terms of USP would be solely it’ premium quality and positioning would be towards the best brand optimally priced as per quality with a product differentiation from cement only as a commodity.

Buyers aspiring for quality and technically superior product will be greatly benefited by having this niche product in their reach. Since the product is of very high quality, the pricing will be matching to its grade but not at all exorbitant in relation to leading OPC brand prevalent in West Bengal.

The Company will operate through Clearing Forwarding Agents, Market Organizers and Dealers. Initially a central hub managed by a C&F Agent will be set up at Burdwan. Two Market Organizers, one for Kolkata, 24 Parganas (N & S), Howrah & Hooghly, and the other for South Bengal Districts ( Burdwan & Bankura) have already been appointed. In addition a rake point with distribution facilities in Kolkata will also be opened. The Company will appoint 70 dealers who will be serviced by Market Organizers. Institutional buyers of repute can also be direct customers of the Company.

In terms of strategy Mr. Juneja concluded “At Binani, we care till the last link of the value chain. Our strategy will be a balanced one, where both whole sellers and retailers will exist and operate in their respective areas. The network will be set up in such a way that end consumers do not have a chance to complain about service. Binani Cement Premium Quality OPC 53 grade will be sold only on Cash & Carry basis not only in trade but also in nontrade. This initiative will create Direct / Indirect employment for 200 persons in West Bengal.”