Chennai-based SRM Group, which has interests in education, healthcare, and transport, among others, has forayed into the cement business with the launch of its brand SRMPR cement.
It will start selling PPC (Portland pozzolana cement) at a price of ₹280 per 50 kg bag, while it will soon sell OPC (ordinary Portland cement) and the price for the same will be announced soon.
The company has set up a separate division to produce cement and its current capacity is 35,000 tonnes per month. The company has invested about ₹225 crore in manufacturing and other facilities such as warehouses.
Ohm Prakash, Chief Executive Officer, SRMPR Cements said the company would be making its cement in three factories, of which two are in Tamil Nadu and one in Andhra Pradesh.
He said the company has already roped in 100 dealers to sell its cement in Tamil Nadu and will increase the dealer network further in the coming months
It hopes to increase the capacity to 10 million tonnes per annum in the next 3 years with expansion into other states.
The industry is expected to see a volume growth of 6-8 per cent going forward and the total capacity of the industry is likely to reach 390-400 million tonnes. The growing housing sector, which typically accounts for 60 to 65 per cent of India’s cement consumption, will remain a key demand driver. Also, continued large investments in roads and infrastructure projects will fuel cement demand, according to industry estimates.
