French cement giant Vicat group will invest INR 1,735 cr (223 million euros) in the Indian cement sector involving both brownfield expansions and Greenfield projects.
The Vicat group chairman Guy Sidos, who was part of the team of French industrialists accompanied France President Emmanuel Macron to India, has signed two memorandum of understanding to this effect in Delhi on Saturday.
Vicat group, which commenced its India operations in 2008 by joining hands with the Indian partner Sagar Cements, had acquired the entire stake to make Vicat Sagar Cements a 100% owned subsidiary in 2014. The company, renamed as Kalburgi Cement, currently operates 2.75 million tons a year cement manufacturing facility in Kalaburagi district of Karnataka.
As a part of the fresh investment plan, Vicat group will invest INR 1,225 cr (140 million euros) on brownfield expansion of the Karnataka plant to add 2.25 million tons capacity by first quarter of 2023, taking the total capacity of Kalburgi Cement to 5 million tons, said India chief executive officer Anoop Kumar Saxena.
The India investment plan also includes setting up a Greenfield cement manufacturing facility in Vizianagaram district Andhra Pradesh involving an investment of INR 510 cr (60 million euros) for a capacity of 1.75 million tons.
“The Andhra Pradesh project will be completed during mid of 2022, taking the total capacity of Vicat group in India to 6.75 million tons,” Saxena told ET.