| Holcim in India: serious growth potential
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A backdrop of economic expansion
India’s economy is growing rapidly, with gross national product increasing at 6 to 8 percent annually, and the construction industry also set to expand for the next few years. To meet the growing demand for cement, our Indian Group companies are expanding their production capacity.
Power and water supplies, roads and public transport are all in urgent need of improvement, and both national government and the authorities in major conurbations are giving priority to major construction projects. Demand for cement is already increasing by 8 percent annually, but public infrastructure needs will drive demand from today’s 140 million tonnes a year to around 200 million tonnes by the end of the decade.
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Making a strong position stronger
Holcim's two Group companies, ACC and Ambuja Cements, have a key role to play in meeting this demand, as their combined annual capacity (45 million tonnes) and nationwide presence makes Holcim the second-biggest player in the market. But to meet demand over the medium and long term, both companies have begun to expand in areas where they already have solid market positions and a good raw material sources, thereby keeping investment costs comparatively low for each additional tonne of capacity.
In many cases, existing plant facilities are being expanded, or new ready-mix concrete operations added, such as at the cement plant in Bhatapara. Located in the federal state of Chhattisgarh, believed to hold around 4 percent of the world's iron ore reserves and 9 percent of global coal and bauxite reserves, the plant is situated in one of the largest limestone excavation areas in eastern India, and will play an important long-term role in supplying the company’s grinding plants in the region. By 2009, the Bhatapara plant will benefit from new kilns, cement grinding and dispatch facilities, and a power station capable of generating 33MW, increasing the clinker capacity by 2.2 million tonnes to 3.4 million tonnes a year.
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A wider responsibility
Holcim's Indian Group companies aren't just increasing capacity, but are also investing in renewable energy. In 2007, for example, ACC acquired six large wind turbines in a new wind power park in Tamil Nadu state. The turbines generate up to 9MW of power, which is passed via the national grid to the Madukkarai cement plant; any surplus energy is returned to the grid for sale.
Helping to improve the standard of living in communities around its production sites is also part of the strategy of our Indian Group companies. This aim is achieved through a wide range of projects, from basic medical provision and education for children and adults, through to advice on agricultural practices and improvements to water supplies.
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