Cement firm sniffs big returns in Northeast
Cement firm sniffs big returns in Northeast

Cement Manufacturing Company Ltd (CMCL), a 70 per cent subsidiary of Century Plyboards Ltd (CPL), is looking to increase the sales of cement as Northeast is witnessing a huge demand in cement due to increase in infrastructure activities. CMCL, which enjoys an 18 per cent market share in the region, has its cement and clinker units at Lumshnong in Meghalaya and sells the cement under the brand name - Star Cement. At present, CMCL's combined annual capacity is 1.2 million tonne (mn t). It is set to expand clinker capacity by 1.75 mn t through its wholly owned subsidiary Star Cement Meghalaya Ltd. The clinker will be taken to CMCL's two proposed grinding units at Guwahati (Assam) and Kahalgaon (Bihar) where 3.20 mn t of cement will be produced. "We are undertaking a capital expenditure of about Rs 1,100 crore to increase our capacity from 1.2 mn t to about 4 mn t. Given the strong demand for cement in the Northeast, we would like to complete our projects very soon," said Sajjan Bahujanka, Managing Director of CPL. CMCL's limestone mines have reserves of 300 mn t, which are enough to meet its raw material requirements for the next 70 years. The firm is entitled to various fiscal incentives ranging from sales tax exemptions to fly ash freight subsidies, according to the policies of the Central Government and the Government of Meghalaya.

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