Reliance Cement Company Private Limited (RCC), a subsidiary of Reliance Infrastructure Limited (RInfra), began production on 17 September 2012 at its first cement manufacturing plant at Butibori, Nagpur (Maharashtra). This unit will mainly service the Vidarbha market in eastern Maharashtra. This is one of two 5 million tpa plants that the company has been working on, the other being located in Madhya Pradesh and soon to open itself. Both are fed by a satellite-network of grinding plants. The company plans to use these two technologically state-of-the-art plants as a foundation for its future projects, and will also leverage best practices in logistics, distribution and last mile selling.
Something that could well be the key to the success of these plants is RInfra’s will feed both plants’ resource and power requirements from within its own group, providing power and flyash from its powerplants, as well as coal and limestone. The combination of these factors, combined with the execution capabilities of a company of Reliance Group’s size, gives RCC the potential to become a leader in the Indian cement industry.
Vice Chairman of Reliance Cement, Mr Sumit Banerjee, said, “Commissioning of the Butibori plant is a landmark event in the cement industry, marking the entry of one of India’s largest business groups into the sector. Reliance’s foray into the cement industry is a natural extension of its interests in power and infrastructure businesses. Reliance Cement aspires to be a ‘NextGen’ Cement Company, and all the business processes of the company, for manufacturing, sales and distribution, customer service and administration are being designed to be fully automated and compatible with the expectations of Indian consumers. While two projects of 5 million tpa each in Madhya Pradesh and Maharashtra are currently under execution, several others are under various stages of development.” Mr Bannerjee also commented that one of the company’s mid-term goals is to place itself among India’s top five cement producers within the next five years.
RInfra is India’s largest infrastructure development company, and so just as the company’s power plants will feed its new cement plants, no doubt these cement plants will feed its development projects. These currently include two metro rail projects in Mumbai and eleven recently-awarded road projects with total length of 1000 km. Adding cement production to its portfolio is likely to create a steep upward growth curve for RCC, as well as further synergistic growth for RInfra itself.
Adapted from various sources by Jack Davidson.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/18092012/reliance_infrastructure_cement_opens_new_plant_680/