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Sanghi Industries, India, takes steps to construct cement plant in Kenya

World Cement,

Sanghi Industries, part of the Sanghi Group, has purchased an area of land in Kenya on which a new cement plant will be constructed. This venture will make Sanghi Industries the first Indian company to construct a cement facility in an east African country.

Local collaboration
The new plant, with a designed capacity of 1.2 million t, will be constructed in collaboration with a local partner, the identity of which is yet to be disclosed. Sanghi and its partner have acquired 650 acres in Kenya and the first phase of the project should be underway in June, while the plant is expected to begin production in early 2012.

Alok Sanghi, director at Sanghi Industries stated, “I cannot comment anything at this stage as nothing has been finalised. A few Kenyan firms have informally approached us, and if anything is finalised, the company will inform the stock exchanges.”

Expansion programme
At present, Sanghi Industries operates a 2.6 million t facility in Kutch, and is currently effecting an investment programme that will increase its cement capacity to 8 million t. The expansion project is estimated to cost some Rs 1100 crore and will see the Kutch facility gain 5.4 million t of capacity. This move will allow Sanghi to assist in satisfying the growing African market, as well as supplying neighbouring countries.

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