Bagaria group to foray in to cement mfg

Ahmedabad: Kolkatta based Bagaria group with diversified interests in tea and steel is now aiming to foray into cement. The company is in talks with Gujarat government for setting up a cement unit in Kutch and is likely to sign an MoU in this regard at the forthcoming Vibrant Gujarat Summit in January next year, government sources said.

The group through its subsidiary AHW Steels is aiming to acquire about 1,000 acres of land in Kutch for the cement project, government sources close to the development said.

AHW is aiming to invest close to Rs 1200 crore for its cement foray. The company has sought mining lease from the state government the process for which is on, sources said. Bagaria group has a turnover of about Rs 400 crores, according to the company’s official website.

Kutch with its rich limestone deposits has lured many cement companies to set up their manufacturing units here. While state owned mining and leasing company Gujarat Mineral Development Corporation (GMDC) has entered into a joint venture with Delhi based Jaypee group to set up a 2.4 million metric tones per annum of cement unit in Kutch, ABG Shipyard is also setting up a cement unit in the desert region for which it has signed a MoU at the previous Vibrant Gujarat Summit.

Deepak Cement, which has ETA and Sharjah Cement holding 26% and 14% respectively, has also commenced production this year under the brand name Sparta Cement at Lakhpat.

Sanghi Cement is meanwhile in the process of raising its capacity to about 9 MMTPA in Sanghipuram region of Kutch. Even Binani group is aiming at setting up a 2.5 MMTPA and is likely to zero in on Kutch, sources added.