Hindcon shelves new plant in western India for Goods and Services Tax

KOLKATA: City-based construction chemicals maker Hindcon Chemicals Ltd has decided to shelve its new greenfield plant in western India and instead expand in West Bengal if Goods and Services Tax (GST) is implemented as projected by government.

"We were planning to expand in either Rajasthan or Maharastra. But, if GST comes as perceived then entry and other associated taxes will be abolished. In that case, we will rather expand in Bengal," Hindcon Managing Director Sanjay Goenka said here today.

He was speaking on the sidelines of launch of seven environment friendly construction and building chemicals here today.

Cost of production is almost 10 per cent lower in Bengal compared to other western India and being value added products, logistics cost will not be a major issue to tap national market.

"We have also achieved green building certification a few and working towards to get on other," Goenka said.

Speaking about construction chemicals industry in India, Goenka said it is about Rs 300 crore market.

He remained optimistic about long term impact on growth of infrastructure.

"There will be short term hiccup in the housing sector due to demonetisation," Goenka said.