LOOKING AT the increasing demand, Satna-based Maihar Cement will hike its annual capacity to 4 million tonnes from the current 3 million tonnes. The company–part of the BK Birla-promoted Century Textiles and Industries Ltd–has taken the greenfield expansion route to increase the capacity by 1 million tpa. The new plant is expected to commission in January next year.
Company Senior Vice President (Marketing) P M Intodia, who was in the City on Friday to attend a dealers’ meet, told reporters that looking at the construction boom in both the residential and commercial sectors, the demand-supply gap for cement would stay for many more years. “An additional capacity of 60 million tonnes is needed over the next four years to meet the demand in the country”, he said.
Intodia said the construction activity both in the public and private domains was set to pick up due to aggressive buying of land by construction majors, increased government spending on infrastructure, rise in average salaries and easy availability of housing loans.
“The cement industry is capital intensive in nature and thus no new plant has come up in the last five to six years further widening the demand-supply gap”, he added.
The company was set up in 1979 at Maihar in Satna district of Madhya Pradesh with a capacity of 8 lakh tonnes. The company sells its products under the brand names of Birla Faulad, Birla Century Classic and Birla Gold.
Company’s deputy general manager (marketing) G C Maheswari and deputy regional manager Sharad Daga were also present at the press conference.