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Shiva Cement plans to increase capacity in line with rising demand

World Cement,

Shiva Cement, India, is in the process of considering setting up a 25 MW power plant. The proposal is yet to be approved and will be discussed at a board meeting to take place on March 26th. The project would be implemented in two phases - the first phase would take place over two and a half years in line with a programme to increase capacity at Shiva Cement.

Expand and modernise
Phase I of the expansion project will increase the capacity to 0.66 million tpa. Modernisation works will also be undertaken, including the installation of a vertical mill to replace the conventional one. Phase I is estimated to cost around Rs 50 crore, while the entire project will require an investment of approximately Rs 115 - 120 crore.

Increasing capacity
This move ties in with an increase in demand in the eastern region of India. Markets in this region have grown 24% over the April - December period and cement prices have also been on the rise of late. RP Gupta, Managing Director of Shiva Cement said, 'while cement prices in eastern India will remain stable, it would fall in most other places.' In the last three months, ACC has added 1 million tpa capacity to its Bargarh plant, raising the facility’s capacity to 2.1 million t. Also, Burnpur Cement is in the process of constructing a facility in Bihar.

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