Sanghi Industries' expansion plans get thumps up
Share of Gujarat based cement manufacturer Sanghi Industries are up 5.88% at Rs. 62.15 this Monday afternoon, after company announced the inauguration of its new cement grinding mill, having capacity of 1.2 million metric tonne per annum (MMTPA) at Kutch, in the hands of Gujarat Chief Minister Smt. Anadiben Patel.
With thus, company’s total capacity has expanded to 4.1 MMTPA. In addition to the inauguration, company has also laid the foundation stone for 15 MW waste heat recovery system at the main plant, which will reduce fuel costs, a very critical input, for the company.
While the inauguration was already known on 2nd July, as per announcement to the stock exchanges, the real trigger for share price to increase from Rs. 52 on 2nd July to Rs. 60 on Friday 10th July was its future plans.
Company has announced investment of Rs. 1,200-1,500 crore over the next 2-3 years to double its current capacity from 4.1 MMTPA to 8.2 MMTPA. This indicates capex of less than US $ 60 per tonne, which is very competitive (current industry benchmark stands at around US $ 100 per tonne). This rise in capacity will also shift the company from a small and local cement manufacturer to the one having a respectable capacity and presence in the entire Western India region.