NEW DELHI (INDIA): CK Birla group firm Orient Cement, which is aiming for a 15 million tonnes per annum production by 2020, expects to reach 12 MTPA output this year, helped by acquisition of Jaypee Group’s assets.
Orient has three cement manufacturing plants — Devapur (Telangana), Chittapur (Karnataka) and Jalgaon (Maharashtra).
“We had drawn out a target to transform our consolidated cement manufacturing capacity from 5 MTPA few years ago to 15 MTPA by 2020, we are expecting to reach a capacity of 12 MTPA (this year)…,” said Orient Cement Chairman Chandrakant Birla in the annual report for FY 2016-17.
This will help to widen Orient Cement’s regional foot print into a pan-India presence.
Presently, it sells cement predominantly in Maharashtra, Telangana, Karnataka, Andhra Pradesh, and Madhya Pradesh. It also sells cement in Chattisgarh, Gujarat, Goa and Tamil Nadu.
Orient Cement has an aggregate manufacturing capacity of 8 MTPA with a clinker manufacturing capacity of close to 6 MTPA.
On May 31, Orient Cement had announced acquisition of two entities, Bhilai Jaypee Cement and Nigrie Cement Grinding Unit, from debt ridden Jaypee Group firms for a total consideration of Rs 1,946 crore.
“This is expected to enhance the company’s cement manufacturing capacity to 12.2 MTPA along with an entry into the central and eastern markets of India,” the company said.
On the outlook, the company said the Indian cement industry is expected to grow 4 to 5 per cent y-o-y in FY18, driven largely by infrastructure growth and a rural housing revival.
In FY 2016-17, Orient Cement had a revenue of Rs 2,171.28 crore.
Source: Press Trust of India