Mumbai: Binani Cement mulls to infuse $100 million in its newly taken over Chinese cement company Shandong Rongan Group Co Ltd that has a 0.4-million tonnes per annum (mtpa) capacity. The company recently acquired 49 per cent stake in the Chinese firm for $11 million. Though holding a minority stake, we have been given management control. They will be raising its holding to 70 per cent by September and enhancing the company''s capacity to 2.2 mtpa in the next three years. Binani Cement intends to tap the debt market soon for funding the China venture. China produces about one billion tonnes of cement per annum, compared to 150 mtpa produced in India.
The companies in Shandong province in China alone produce about 150 mtpa. China''s per capita cement consumption is higher at 900 kg per annum against India''s 106 kg. Quality power supply is assured by the Government, which saves our investment on captive power plant and fuel. They hope the strong Chinese demand to continue. The company has a presence in Dubai with a production capacity of one mtpa. Binani Cement has added additional production capacity of 2.2 mtpa at its existing facility in Udaipur, Rajasthan.
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