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Wonder Cement, a part the of Rajasthan-headquartered RK Group, has invested about ₹450 crore to set up a 2-million tonne per annum clinker grinding unit in Dhule, Maharashtra. This also marks the company’s foray into the State.
This is in addition to the earlier announced plan to invest ₹2,500 crore by the end of financial year 2020.
“The Dhule plant, which will commence operations from Monday, will distribute cement mainly across Maharashtra, while a minimal quantity would be supplied to Madhya Pradesh. The plant will supply mainly to North Maharashtra and Thane, Mumbai and Pune,” Managing Director JC Toshniwal told BusinessLine .
“This marks our entry into Maharashtra,” he said, adding that the facility is located at Nardana, about 30 km from Dhule.
The company is also in the process of developing a railway siding for the unit.
Capacity increase
Following the commencement of the Dhule facility, Wonder Cement’s production capacity will increase to 8.75 million tonne per annum from the present 6.75 million tonne per annum. The clinker required for the unit will be supplied from Nimbahera plant in Rajasthan. Gypsum, another raw material used for manufacturing cement, would be procured from Gujarat and flyash from nearby a thermal power plant.
Expansion plans
In addition to the plants in Nimbahera and Dhule, Wonder Cement is in the process of setting up a third clinker facility of about 2.5 million tonne per annum in Nimbahera, Rajasthan.
“The civil works for the third clinker unit is in full swing, and we will commission it by mid-next year. This will help to increase our cement production capacity to 11 million tonne per annum from 8.75 million tonne per annum,” Toshniwal added
Two more clinker units
Under the expansion plans, the company will look at setting up two more clinker units, one in Madhya Pradesh; the location for the other is yet to be finalised. The ₹2,500 crore required for the expansion would be sourced from internal accruals and via debt.
Earlier this month, RK Group had forayed into housing finance by launching Wonder Home Finance Ltd (WHFL) to primarily fund affordable housing units and small businesses. The firm expects to disburse loans of about ₹200 crore by March 2019.
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