Adani group to foray into cement sector

Dalmiya group, ADAG, Jaiprakash Associates also explore state for cement projects.

Adani Enterprises has chalked out plans to foray into cement sector. The group’s entity Adani Enterprise is aiming to set up a 5 Mmtpa cement and clinker unit in Kutch for an estimated investment of Rs 1800 crore.

Adani is in the process of setting up a 4,600 MW power project in Mundra which together with Tata’s UMPP in the same area is expected to generate about 4 MMTPA of fly-ash that is used for blending with cement.

“The capacity of the cement plant looking at the fly-ash available can be ramped upto 8 MMTPA,” said sources close to the development.

When contacted an official of Adani group confirmed the development and said that it made business sense to foray into the sector and they had been planning it for quite some time. He however, refused to divulge more details.

Kutch is rich in limestone deposits, the basic raw material required to manufacture cement and Adani is aiming to rope in state-owned Gujarat Mineral Development Corporation (GMDC) or Ashapura Minechem for supplying the raw material, sources added.

Adani has logistic advantage in terms of port and port led facilities at Mundra port from where it can export to Gulf countries.

Besides, Dalmiya Cement has also signed MoU with Gujarat government for setting up a cement unit along with a captive power plant in Kutch for an estimated investment of Rs 1700 crore.

Anil Dhirubhai Ambani Group is also exploring the possibility of setting up cement units in the state. This will be ADAG group’s first greenfield project in the state, said an official close to the development. The group is looking at three locations including Porbandar and Veraval for the cement units. “The capacity of the plant could be about 5 MMTPA or more depending on the availability of the raw material and site that the company chooses,” said sources close to the development. ADAG is also aiming to set up 300 MW power plant for captive purpose, sources added.

Jaiprakash Associated Ltd has also lined up Rs 2800 crore for setting up a 6 MTPA cement unit along with desalination unit and a captive jetty in Kutch region. The company has been in talks with GMDC for a joint venture, sources added.