India: Shiva Cement to invest INR163cr on capacity expansion

India: Shiva Cement to invest INR163cr on capacity expansion
Published: 01 December 2009

Orissa-based Shiva Cement is planning to expand its production capacity by 0.66Mt in its existing 2.3Mt at an investment of INR163.5 crore to meet the region’s rising demand.

The company proposes to fund the project with a term loan of INR80 crore while the remaining amount is expected to arrange through internal accruals.

The company also proposes to come out with a rights issue or preferential allotment of equity shares in near future. Cement demand in the eastern zone during the quarter ended September surged 17 per cent, the highest zonewise growth in the country, mainly from rural sector as government’s fiscal stimulus multiplied investment on housing projects.