Binani Cement to raise funds for overseas expansion
Binani Cement, part of the Braj Binani group, is looking for equity-linked fund raising options to fund its expansion abroad.
The company, which currently has around 75% of its sales coming from India, wants to reduce it to 50% over the next five years and will expand into Africa, besides scaling up operations in China.
"When most of the operations are in India, we are susceptible to market swings," said Vinod Juneja, managing director, Binani Cement. "We want to hedge our capacity."
The company already has operations in Dubai and China and is in the process of setting up a cement grinding plant in Mauritius. It is also evaluating Tanzania and South Africa. "They have surplus power, coal, land, etc, which we require for the cement plant," Juneja said.
Binani Cement expects to increase its production to around 5.5 million tonnes (mt) this year, from 4.9Mt in FY09. The company currently two plants in Rajasthan and one in China, which is being expanded. "We are at around 1 million tonnes capacity now and will reach 2 million tonnes in a year from now," Juneja said. Last year, the plant had a capacity of 500,000 tonnes. Binani also has a 2 mt grinding plant in Dubai. Published under Cement News
