Purbanchal Cement, based in Assam, has earmarked Rs 200 crore for expansion and acquisition over the coming years, including foraying into markets outside the northeastern area like West Bengal, a senior official said. The Maithon Group company currently operates a 0.5 million tonne capacity plant near Guwahati.
“We are evaluating between brownfield expansion and acquisition preferably with mine rights in the northern part of Assam,” Purbanchal Cement MD Vedant Agarwal said.
“We have earmarked Rs 200 crore over the next two-three years to fund our expansion. Initially, we are aiming at ramping up our installed capacity to 1 million tonnes,” he said.
The company is looking at potential beyond the northeast, according to Agarwal.
“There are plans to set up a grinding unit in West Bengal to tap the eastern market demand,” he said.
The West Bengal government has been wooing investment from the manufacturing sector by banking on huge coal deposits, according to officials.
Cement makers, however, have recently been adversely affected by high commodity prices and supply constraints.
“As a result of coal shortage, the industry is experiencing severe cost pressure, which has led to price volatility. However, things seem to be improving, albeit slowly,” Agarwal said.
