French cement firm Vicat to invest over `1,700 crore
would spend about Rs 1,225 crore (€153 million) in expanding its Kalaburagi factory from 2.75 MT per annum to over 5 MT.
It would also set up a greenfield factory at Vizianagaram in Andra Pradesh with an investment of over Rs 400 crore to take Vicat’s total capacity in India to 11 MT by 2021.
He said the company has already acquired 200 acres in Vizag for a grinding plant. It is being set up as part of its strategy to tap new markets like Odisha and West Bengal along with the existing market in Andhra Pradesh.
Vicat competes with French giant Lafarge, Indian cement brands such as UltraTech, ACC and Ambuja, among others. It has no plans of decreasing prices to sell more at the cost of profitability. The company recorded sales of 2.4 MT out of a capacity of 2.75 MT from Kalburgi last year prompting it to add another line.
Indian cement industry has a total installed capacity to produce a total of over 450 MT per annum, out of which about 270 MT were sold last year. “The pricing of the cement in the market is not good. But we are under no pressure to sell at a cheap price,” Saxena pointed out.
He said the company has already invested Rs 300 crore this year to expand its business in the country. “We have set up 1.2 MT of bulk cement terminal at Kalamboli in Mumbai with an investment of Rs 70 crore and our plans are on track to set up the second line of 2.75 MT per annum capacity at the existing Kalburgi cement plant,” Saxena said.
With expansion, the brand at present has a market share of 10 per cent in Mumbai, 18 per cent in Andhra Pradesh and Telangana, 5 per cent in Tamil Nadu, 14 per cent in Karnataka and 3 per cent in Kerala regions.
In the last 10 years, the company operates in 8 states namely Andhra Pradesh, Telangana, Goa, Karnataka, Kerala, Maharashtra, Puducherry and Tamil Nadu through a network of 3,300 dealers.