Police unearthed a factory manufacturing fake branded cement at the Jagatpur Industrial Estate here on Sunday. The owner of the factory, lalit Jain, was arrested. Police seized over 7, 500 bags of fake cement kept in the factory and some equipments used for manufacturing it. Police sources said that the accused used to manufacture his product and pack it in bags with logos of different reputed companies and then sell it at reduced price to wholesalers and shops. Empty bags of leading cement companies were also recovered from the factory premises. Illegal activity had been going on in the area for quite some time, the sources added.