Mumbai: The Aditya Birla Group flagship company Grasim Industries Ltd has entered into a memorandum of understanding with the government of Orissa for setting up a 3.50-million tpa integrated cement plant in the Sundergarh district in the state. The plant will involve an investment Rs1200 crore and will include a 50 MW captive thermal power plant with a split, grinding unit.

This will be the largest cement project in Orissa and is expected to be commissioned in three years.

The state government has agreed to assist the company in acquisition of the necessary limestone mines and land for the plant as well as in setting up of a rail link, apart from making available adequate sources of fly ash, slag and coal.

The MoU was signed by I Srinivas, commissioner-cum-secretary, department of industry for the government of Orissa and by S K Maheswari, executive president, Aditya Birla group and chief manufacturing & project officer of the group's cement business on behalf of the company.

The Aditya Birla Group's cement production for September 2006 grew by 17.01 per cent to 23.28 lakh tonnes, while despatches rose by 18.27 per cent at 23.14 lakh tonnes over September 2005. Cement production for the period April-September 2006 at 142.56 lakh tonnes was up 6.41 per cent vis-à-vis 133.97 lakh tonnes for April-September 2005. Despatches at 142.27 lakh tonnes in April-September 2006 was up 6.76 per cent from 133.26 lakh tonnes in the corresponding period last year.

Grasim Industries Limited, a flagship company of the Aditya Birla group, ranks among India's largest private sector companies, with a standalone t urnover of Rs6,621 crore for FY 2005-06 and a consolidated turnover of Rs10,192 crore for the period.

Starting as a textiles manufacturer in 1948, Grasim's business today comprises viscose staple fibre (VSF), cement, sponge iron, chemicals and textiles. The company holds a dominant position in the businesses of viscose staple fibre, Cement, sponge iron, chemicals and textiles.

All of Grasim's units have earned ISO 9002 and 14001 certifications. Product quality, innovation and eco-friendliness are a hallmark of all the company's divisions.