Imerys invests Rs 350 crore in Vizag calcium aluminate plant, eyes 50,000-tonne output

Imerys, a French multinational company that produces industrial minerals, has invested Rs 350 crore in its calcium aluminate plant in Visakhapatnam.

The new plant will supply SECAR 70V, a calcium aluminate binder for refractory and construction markets, and SECAR 68V, a calcium aluminate binder for low-cement castables, the company stated.

According to Imerys, the one-billion-euros refractory market in India is expected to grow at a CAGR of approximately 8 percent per annum.

In an interaction with Moneycontrol, Vincent Couty, Vice President Refractory Producers said, "We have built this plant with a capacity of 30,000 tonnes, which we plan to ramp up in the next few years; we can increase it to 50,000 tonnes capacity with limited investment."

Commenting on the demand prospects as the construction and real estate sector has been badly impacted by COVID, Couty said: "Right now, the demand is probably a bit impacted but the rationale of investment is looking for the long term."

Despite a downturn in demand, Imerys is hopeful with the Rs 1.4 trillion infrastructure pipeline in the offing. "We think the market will grow going forward. The government itself is pushing hard to develop the infrastructure projects in the country," said Segi P. Idicula, Managing Director- Imerys India Refractory, Abrasives & Construction

"I always believe in the government's thrust and policies to drive business. There are Rs 1.4 trillion India infrastructure pipeline projects in the offing, and this investment is supposed to be done between 2020 and 2025. There may be delays because of COVID, but it's not going to go away. The country needs it," added Idicula.

Imerys India currently employs around 800 people, located in 16 industrial sites and eight sales offices.