Wonder Cement Ltd, a part of RK Marble Group, today said it has chalked out plans to invest around Rs 3,200 crore to increase cement production capacity to 10 million tonne in next five years from present 3.25 million tonne.
"We have 3.25 MT per annum cement manufacturing capacity at our Bhatkotri village unit in Rajasthan and have invested Rs 1,600 crore to double the current capacity to about 7 MT by setting up a second production line.
It is likely to complete by this year end," Wonder Cement executive director Jagdish Chandra Toshniwal told here. The company has ambitious plans to further expand the current capacity to 10 million tonne by setting up third production line at a cost of Rs 1,600 crore in next five years period, he said.
The project will be funded through internal accrual of Rs 300 crore, promoters' contribution of Rs 500 crore and debt of around Rs 2,400 crore, Toshniwal said.
Currently, the plant is running at full capacity selling 1,80,000 bags per day catering to northern states but 50 per cent of its volume is sold in Rajasthan, he said, adding that the company is also expanding its base in north Gujarat and western parts of Uttar Pradesh and Madhya Pradesh.
Toshniwal pointed out that northern India has cement demand of 58 MT per annum and supply of 70 MT per annum. Despite surplus capacity, the company was able to sell its products due to superior quality. "The cement industry is evolving rapidly and as we prepare for the next phase of the company's growth.
We are focusing our efforts on increasing our market share by creating a clearly distinctive positioning in the market place," he said.
Some of the recent government initiatives such as development of 100 smart cities, housing for all by 2022 and postmonsoon commencement of several infrastructure projects are expected to provide a major boost to the sector, Toshniwal added.
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