ACC to invest Rs 11 billion in Eastern India

Kolkata, Sep 7(UNI) Cement major ACC will invest Rs 11 billion in Eastern India over the next four years for network and capacity expansion.

"We are going to invest Rs 11 billion for setting up of 50 ready mix cement plants and increasing the existing capacity by 2010," company's regional head for Eastern India Samit Budhraja told reporters today.

He said of the total investment, Rs five billion would be spent for setting up ready mix cement factories by 2010 while the rest would go for capacity expansion of the existing plants at Bargah in Orissa and Sindri in Jharkhand by 2008.

"The increase in capacity will push up our production in Eastern India to seven million tons from the existing five million tons by 2008," he said.

In reply to a question, Mr.Budhraja said the price of cement was likely to increase by five to ten per cent in near future because of hike in fuel costs and freight charges.

He said the outlook in the Indian cement market would remain 'good' up to 2009 though there would be a slump thereafter because of capacity expansion by all the cement companies.

"Till 2009 the demand and supply will be at par. But supply may overshadow demand thereafter," he said.

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