Reliance Cement, a subsidiary of Reliance Infrastructure, has commenced production from its first manufacturing unit at Butibori in Maharashtra nearly five years after its inception.

Initially, the company intends to buy clinker from other cement companies, blend it with fly ash produced by Reliance Power and sell it in the market under its own brand name. Reliance will tap the Vidarbha market in Maharashtra.

The cement plant in Maharashtra will get fly ash from 600 MW Butibori power plant, while the grinding unit in Madhya Pradesh will source it from the 4,000-MW Sasan ultra mega power plant.

The company is currently executing its two projects with a total capacity of 10 million tonnes (mt) in Madhya Pradesh and Maharashtra with connected satellite grinding plants.

Pegged at five mt each, these two projects will set the foundation for the upcoming projects thereon, said the company in a press release.

Sumit Banerjee, Vice-Chairman, Reliance Cement, said Reliance’s foray in the cement industry is a natural extension of its interests in power and infrastructure businesses.

“While two projects of five mt a year each in Madhya Pradesh and Maharashtra are currently under execution, several others are under various stages of development,” he said.

Reliance’s entry into the cement market comes at a time when established players are finding it difficult to overcome the fall in demand and rising input cost.

Though raw material prices have eased, the industry is facing a slowdown in demand. The high financing cost has taken a heavy toll on infrastructure and housing projects.

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