The Hindu Business Line : Century Plyboards' cement unit may go on stream next month

THE first phase of Century Plyboards' one-million-tonne cement plant in Meghalaya is expected to be commissioned next month, and the second phase in December 2005.

According to Mr Sanjay Agarwal, Deputy Managing Director of Century Plyboards (India) Ltd, the plant is spread over a 150-acre plot and is located at a place called Lumshnong, situated between Silchar and Shillong.

Century Plyboards' cement company is called Cement Manufacturing Co Ltd. Century Plyboards holds 50 per cent and the rest is held by the Kolkata-based Shyam Group and two other individuals. The plant, which would be employing 250 people, has a locational advantage, as limestone is easily available in that region. The new plant would be manufacturing its own clinker. There would not be any raw material shortage in that region, Mr Agarwal said.

Between the commissioning of the first and second phase, the cement unit would be producing surplus clinker, which would be marketed in the region. "However, with the completion of the second phase, we would not have any excess clinker", Mr Agarwal told Business Line.

According to him, the total investment in the first phase of the project would be Rs 100 crore. Another Rs 75 crore would be invested in the second phase. The debt-equity ratio of the total project cost is said to be around 65:35.

During 2005-06, the unit is expected to generate a turnover of Rs 125 crore and by 2006-07 this may go up to Rs 225 crore. "We are hoping to break even within a year of the first phase completion," he said. All major cement players in the country are present in the North-Eastern market. According to him, the plant would have a price advantage over others in that market.

"We would have at least an advantage of Rs 15 per bag. Generally, cement bags going from Kolkata carry a transportation tag of Rs 30 per bag," he said.