Reliance Cement Company, an SPV of Reliance Infrastructure Ltd, is commissioning its first 5 million tonnes per annum plant in Madhya Pradesh later this month.
The project has been implemented at a financial outlay of approximately Rs 3,000 crore, setting a new benchmark in terms of capex efficiency, nearly 25 per cent lower than comparable recent transaction values, said the company in a statement on Monday.
The company’s announcement comes at a time when the industry has built production capacity in excess of demand. The slowdown in economy has resulted in lower offtake of cement by both the real estate and infrastructure companies.
Reliance Cement has implemented the project within 22 months, more than five months ahead of the targeted schedule, it said.
The project includes a waste heat recovery system which will generate over 10 MW of power from the heat that would otherwise be lost as waste. Further, the cement plant is designed and built at par with the international standards to be one of the most energy efficient plants in the country, it added.
In a filing to the BSE, Anil Ambani, Chairman, Reliance Infrastructure, said, “We are delighted to add cement business to our portfolio of high growth infrastructure businesses.”
Built as one of the most energy efficient plant in the country, the Madhya Pradesh project has been conceptualised with waste heat recovery systems and will generate 10 MW of power from heat that would otherwise be lost as waste.
Reliance Cement has already been launched in Maharashtra market last year with supplies from the Butibori plant which has an approximate capacity of 0.5 MPTA.
The new manufacturing unit, expected to contribute annual revenue of Rs 3,000 crore, will enable the company to expand in the central, eastern and northern markets of India.