Reliance Cement

Reliance Infrastructure To Exit Cement Business By Selling Off Reliance Cement

Anil Ambani, head of the Anil Ambani led Reliance Group has gone on record stating that  the company would look at divesting stake in non-core businesses including cement to bring down debt.

Started in 2007, Reliance Cement is a fully-owned subsidiary of Reliance Infrastructure, part of the Anil Ambani led Reliance Group. The interest in the cement business was linked to the growth of its power business with the fly ash waste generated from the Sasan Ultra Mega Power Project being used as a basic raw material.

Reliance Cement had planned on earlier to emerge as the one of the biggest cement players in the country with the largest single location cement facility. It had initially planned to set up four cement plants of 5 MPTA cement capacity each at a massive investment outlay. All the units were to come up in Madhya Pradesh so that they could  leverage on the strengths of the Reliance Group's Sasan Ultra Mega Power Project.

The original blueprint included plans to scale up operations to 15 MTPA over the 3-5 years with integrated cement units in MP and Maharashtra.

Reliance Cement has a total installed capacity of 5.8 MPTA. Out of this 2.8 MTPA is at the mother unit based in Maihar, Madhya Pradesh that was commissioned in 2014. The rest of the cement units are in Kundaganj, Uttar Pradesh and Butiburi, Maharastra.

Reliance Cements is presently marketed in UP, MP, Jharkhand, West Bengal and in parts of Maharashtra.

Posted by Stewart D'Rozario Cement Marketing Consultant from news reports.