Reliance Cement’s 2-million tonnes per annum (MTPA) in Rae Bareli has become operational, andthe company’s aim is to capitalise on the huge demand-supply gap in the state, according to chief executive officer Arvind Pathak.
At present, the cement market in the state is pegged at around 26 MTPA, while the total cement production in the state stands at about 16 MTPA — a demad-supply gap of 10 MTPA. The deficit is bought from outside the state. Uttar Pradesh has Maharashtra are among the top cement consuming markets in India.
With increasing in sectors such as industries, real estate, construction, infrastructure and the onset of various Special Economic Zones (SEZs) being developed in the state, Pathak said the cement market was expected to grow at the rate of six per cent per annum in near future.
He said the company was well positioned and equipped to fulfill the gap in demand and supply.
The company has invested about Rs 500 crore in the Rae Bareli plant, which would also consume about 6,00,000 tonnes of fly ash annually.
Group company Reliance Power, which runs a 1,200-Mw thermal power plant in Roja (Shahjahanpur district), would transport fly ash generated from its unit to the cement plant for consumption. “We aim to become among the top-three cement companies in India with total capacity of 50 MTPA,” Pathak added.
The company is developing two cement plants of capacity of 5 MTPA each at Maihar (MP) and Yavatmal (Maharashtra). After UP, Reliance Cement plans to expand presence in the central, eastern and other northern markets of India.
The company has applied for mining leases/prospecting licenses in the states of MP, Karnataka, Uttarakhand, UP, Maharashtra, Chhattisgarh and Rajasthan.