Economy & Market

Madras Cements to sell its Bengal unit

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Madras Cements, the flagship enterprise of Chennai-based Ramco Group, would sell its cement grinding unit in West Bengal. "We have been approached by a number of cement manufacturers to sell the grinding unit. At present we are only exploring the offers made by these people. No decision has been taken as yet," said P R Venketrama Raja, vice-chairman, Ramco Group. The company is also holding talks with European giants Lafarge and Holcim. Earlier, KKR-backed Dalmia Cements had shown keen interest. The Rs 2,636-crore Madras Cements moves clinker (an intermediary product in cement manufacturing) from its existing cement plant at Jayanthipuram in Andhra Pradesh in bulk and grinds it with gypsum and bags them as cement to sell in the eastern markets. The unit located at Kolaghat in Purba Medinipur district in West Bengal was set up to feed cement from the surplus southern to eastern region. Since clinker can be moved in bulk, logistics costs can be brought down as bagged cement transportation is more expensive than clinker transportation.

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