Cement makers are finding a major business in state governments’ concrete road projects. Vidarbha state government works constitute almost 50% of the industry’s business.
Out of this, road building is expected to have a major share. The use of bitumen has come down considerably. Even several Panchayat organizations are going for concrete roads for which cement is needed.
Concrete road works are going on in other states too, though the ratio may vary as compared to Maharashtra, he said. A part of the FMCG Major Emami Group, the cement brand was launched last year.
The company has plants in Chattisgarh, West Bengal and Odisha with a combined capacity of 6 million tons per annum.
The capacity utilization at present stands at 60%, said Chawla. It is aimed to take the overall sales to 10% of the total market in the country
It plans to maintain around 65% of business from the retail and private buyers with rest from institutional sales which includes government departments, he said.
“Currently, the entire sales in our existing markets of Chattisgarh, West Bengal, Jharkhand, Bihar, Odisha, eastern Madhya Pradesh and Vidarbha regions is close to around 1.5-2 lakh tons per month.
We have specific ramp up plans targeting to scale this up to 3.2 million tons in the current financial year,” said Chawla.
As a part of its expansion plan, the company has recently acquired two limestone mines in Rajasthan and Andhra Pradesh, he said.
Image link : www.google.co.in