India : My Home plans 10 million tonne cement capacity.

Byline: shiv03

Hyderabad-based My Home Industries plans to increase its cement manufacturing capacity to 10 million tonnes in the next five years at an investment of Rs 3,000 crore. The company has about 3.5 million tonnes cement capacity at Nalgonda in Andhra Pradesh.

My Home, a closely held company with interests in construction and building materials, recently sold a 50% stake to Irish cement maker CRH for Rs 1,840 crore.

"We are working on a strategy to acquire some existing units and set up greenfield units as well. It will be finalised shortly," My Home chairman and managing director J Rameshwar Rao said. "We are yet to decide on the mode of funding. CRH will also join the process if required," he said.

My Home launched its Portland Slag Cement from its newly built plant in Visakhapatnam, where it has created 1.5 million tonne capacity by using the slag produced at Vizag Steel Plant.

The plant at Vizag has been set up with an outlay of Rs 300 crore met completely through internal accruals. "We are looking at the southern market first. In fact, from South we will be able to cater to several neighbouring markets," Rao said.

Tony Macken, CRH country manager, told DNA Money, "We are testing the waters in the Indian markets. We definitely have plans to expand in cement and other building materials. Our model is to gradually build it up piece by piece instead of going big at a time. We worked using this model in various parts of the world."My Home and CRH have an agreement for exclusivity in the southern market while for the rest of the country, the Indian firm has the first right of refusal.

My Home is planning to enter eastern markets using the Vizag capacity and would explore Orissa, West Bengal, Chhattisgarh, Jharkhand and parts of Bihar.

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