ACC-man to lead Reliance Cementation
The group has announced its cement plans six months back to take advantage of the huge amount of fly ash that would be produced as a result of its power projects under Reliance Power, reports Suman Layak.business Updated: May 06, 2008 23:16 IST
The Anil Dhirubhai Ambani group has roped in Arvind Pathak from ACC Ltd to head its cement venture that has been named Reliance Cementation Ltd. The group is planning to create 20 million tonne cement capacity with the first project of five million tonne coming up by 2012 near Satna in Madhya Pradesh.
The group has announced its cement plans six months back to take advantage of the huge amount of fly ash that would be produced as a result of its power projects under Reliance Power. The cement sector in India is dominated by the Holcim-controlled ACC-Ambuja group and the Aditya Birla owned Grasim-Ultra Tech combine. A ban on cement exports has pushed down prices a bit now in India.
A senior ADAG spokesperson confirmed the hiring of Pathak, who was the head of south and west for ACC. He further added: “We have already got one prospecting licence for a limestone mine in Madhya Pradesh and have applied for six more. They are in advanced stages of the approval process.”
Reliance Cementation will be a separate line of business from the ADA Group of companies and will not have any investments from any of its frontline companies like Reliance Energy or Reliance Power. The company expects to follow a strategy of having a clinker producing plant close to the raw material and then have some crushing units closer to the market. Total investment of Rs 10,000 crore is to be made over a period of 10 years.