The commissioning of the one million tonne capacity unit is being done in two phases. The first phase, which is being set up at a cost of Rs 50 crore, will have a capacity to produce 0.5 million tonne (MT) annually. It will cater to the states of Punjab, Himachal Pradesh, Haryana and Jammu and Kashmir.

The project has been funded through borrowing and internal accruals. An increase in sales by 8 per cent in the northern regions encouraged the company to set up this unit. Sales rose from 22.03 lakh tonne (1998-99) to 23.86 lakh tonne in 1999-2000. The company fetched Rs 3-4 more per bag compared to its earnings in the previous year in these markets. Cement has a low shelf-life and if consignments get held up on the roads for long, it makes the product redundant. In order to avoid this, cement grinders are being set up near larger markets. Clinker is transported to these units after which it is ground into cement and then marketed.Gujarat Ambuja already has a grinding unit in Ropar which caters to the northern parts of Punjab. Its plant in Bathinda will cater to the southern part of the country.