Like NTPC, India's SAIL to Enter Cement Manufacturing Sector

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Researched by Industrial Info India (Delhi, India)--NTPC Limited (BSE:532555) (New Delhi), India's largest power company, will foray into the cement manufacturing sector. The company plans to invest in cement mini-plants and cement grinding units at its various thermal power plants. The investment could reach $1.5 billion or more.

NTPC is in the process of finalizing a proposal for sourcing a new technology for cement manufacturing that will be used by the company's engineers to set up commercial cement production units. The initial plan is to set up integrated cement mini-plants and grinding units at the company's Korba, Dadri, Sipat, Singrauli, Ramagundam, Vindhyachal, Badarpur, Barh, Rihand, Talcher-Kaniya and Bongaigaon units.

The first proposal to venture into cement manufacturing came in 2009-10, when NTPC made the decision to form a joint venture with Cement Company of India (CCI) and other state-owned cement firms to set up plants .But in a fresh proposal, the company is all set to go solo in setting up the cement units.

This has become an industry trend of sorts, with Steel Authority of India Limited (BSE:500113) (SAIL) (BSE:500103) also having a partnership with Jaypee Industries to set up cement plants at its steel mills. This initiation by big steel manufacturers and thermal power companies benefits everyone, as the slag and fly-ash waste produced by these manufacturing units can be used in cement production.

NTPC generates 36,014 megawatts (MW) of power annually and is marching ahead to hit 75,000 MW by 2017. This has further fueled the company's willingness to enter cement manufacturing for better use of the companies captured fly ash.

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