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Holcim-controlled cement giant ACC has charted an expansion plan to add 5 million tonne per annum with two greenfield units besides brownfield expansion of one unit, with an investment of Rs 3,300 crore ($647 million), Kuldip K Kaura, managing director of  ACC, has said.

The company is slated to add one greenfield grinding unit each in Sindri (Jharkhand) and West Bengal.

“We will build two grinding units in Sindri and West Bengal with a capacity of 1.5 million tonne each. We are in the process of receiving our approvals and this investment would begin from this year,” said Kaura.

At present, ACC has a total capacity of 30 mtpa.

Earlier this month, ACC had announced its intention to phase out its Jamul plant in Durg district of Chhattisgarh of 0.81 million tonne per annum clinker and replace it with a 2.79 mtpa clinker and grinding capacity.

One of the biggest dampeners in ACC’s margins has been its raw material costs which include coal.

ACC has recently received coal block allotments from Coal India Ltd in Madhya Pradesh and West Bengal. It has received four blocks in Madhya Pradesh and one in West Bengal to partially meet its coal requirements.

Kaura added, “By 2015 we will be able to use coal from these blocks mitigating out increase in coal costs.”

Another cement firm which has expanded its presence in eastern region of the country is KKR-backed Dalmia Cement. The subsidiary of (DBEL) had recently struck a deal to acquire up to 50 per cent of Kolkata-based Calcom Cement India Ltd, for an aggregate investment amount of Rs 238 crore ($46 million). Calcom has plants in north east region of the country.

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