Star Cement plans to expand in the North East with the Centre pushing for the development of infrastructure and affordable housing in the region.

The company has recently commissioned a grinding unit in Bengal at an investment of Rs 450 crore, taking its overall capacity to a little over 6 million tonnes per annum (mtpa) with a clinker capacity of 2.8 million tonnes. Assam and Meghalaya are the two states where the company is present along with Bengal.

The company’s chairman, Sajjan Bhajanka, said there was a potential for additional clinker capacity of around 2 million tonnes and another grinding unit of similar capacity. The cumulative investment in both the projects could be around Rs 1,400 crore.

The expansion of the cement capacity would follow the scaling up of clinker capacity. “By the time we comission another plant, we would be in a surplus position. The demand in North East and Bengal will also grow,” said Bhajanka.

“After North East, the next natural expansion for the company was in Bengal and that too north Bengal. For us expansion in North Bengal was a low hanging fruit because it is nearer to our plants and we would be incurring less transportation cost,” said Bhajanka.