India: According to the Press Trust of India, Wonder Cement, part of RK Marble Group, plans to invest US$500m to increase its cement production capacity to 10Mt/yr in the next five years from the current 3.25Mt/yr.
"We have 3.25Mt/yr of cement manufacturing capacity at our Bhatkotri village plant in Rajasthan and have invested US$250m to double the current capacity to about 7Mt/yr by setting up a second production line. It is likely to be complete by the end of 2015," said Wonder Cement's executive director Jagdish Chandra Toshniwal.
Toshniwal added that Wonder Cement plans to further expand the current capacity to 10Mt/yr by setting up a third production line at a cost of US$250m in the next five years. The project will be funded through an internal accrual of US$47m, promoters' contribution of US$78m and debt of around US$376m.
Currently, the plant is running at full capacity and sells 1.8m bags/day to the northern states, with 50% of its volume sold in Rajasthan. Toshniwal said that Wonder Cement is also expanding its base in north Gujarat and western parts of Uttar Pradesh and Madhya Pradesh.
"The cement industry is evolving rapidly. 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," said Toshniwal. Some of the recent government initiatives such as development of 100 smart cities, housing for all by 2022 and post-monsoon commencement of several infrastructure projects are expected to provide a major boost to the sector, Toshniwal added.
