BVCL to expand capacity
Barak Valley Cement Ltd (BVCL), a major cement manufacturer in the Barak Valley region in Assam, plans to set up a second unit adjacent to its existing one. The company will invests Rs 275 crore to set up a 0.6 mtpa integrated cement manufacturing unit, expected to be on stream by early 2012. "The Northeast has an installed capacity of 5 mt. Cement demand in that region has been growing at a faster pace than the rest of the country - 15 per cent, compared to 12 per cent for the rest of India. The increase in capacity will help us to strengthen market share in the region. We have already received environment clearance for the project," said
Bijay Kumar Garodia, Chairman of BVCL
. The expansion will be funded through banks and internal accruals. The Rs 150 crore BVCL, with a production capacity of 0.35 mtpa, is located in an area with poor links to mainstream India, which increases the cost of major cement brand in the region.