French cement major to set up plant in Vizianagaram

HYDERABAD: The Euro 2.5 billion turnover French cement biggie Vicat Group will be pumping in ?1,735 crore (Euro 217 million) in its Indian operations over the next three years to expand its cement plant at Kalaburagi in Karnataka and set up a greenfield project at Vizianagaram in Andhra Pradesh.
Vicat Group chairman Guy Sidos, who is part of the team of French business barons accompanying French President Emmanuel Macron on his India visit, inked two MoUs in New Delhi on Saturday — one with the AP government and the other with the Karnataka government.
This includes an investment of ?1,225 crore (Euro 153 million) in expanding its existing cement plant at Kalaburagi from 2.75 million tonnes per annum (mtpa) to 5mtpa and setting up a greenfield 1.75mtpa plant at Vizianagaram in AP at a cost of ?510 crore (Euro 64 million) to take Vicat’s total capacity in India to 6.75mtpa by 2021-22, Vicat’s India CEO Anoop Kumar Saxena told STOI.
“We have already acquired 200 acres in Vizianagaram for a grinding plant, which will be wholly owned by Vicat and will be our own brand. It is being set up as part of our strategy to tap new markets like Odisha and West Bengal along with existing markets in Andhra Pradesh. We hope to ground the plant in six months after we get environmental clearances,” Saxena said.
The Vicat group has a presence in India since 2008 with the incorporation of Kalburgi Cement Private Limited (formerly Vicat Sagar Cement Private Limited), which is a 100% subsidiary engaged in the manufacture, distribution and sale of cement and clinker in India. The French major also acquired 51% stake in Hyderabadbased Bharathi Cement, which is promoted by YSR Congress party supremo YS Jagan Mohan Reddy.
Vicat Group has so far pumped in foreign direct investment of over ?2,000 crore in the Indian market.