India: Sagar Cements’ new units launch in July
Sagar Cements Ltd will be commissioning its INR296-crore brownfield clinker and cement plants in July. This would push up the cement production capacity of the Hyderabad-based company from 0.6Mta to 2.5Mt while the clinker capacity would shoot up to 2.1Mt from 0.5Mt.
“Operationally, the additional capacities will flow in from July, which will make a big difference to us,” Mr Srikant Reddy, Director, Sagar Cements, told Business Line.
About 70 per cent of the production would be sold in Andhra Pradesh and the rest would be exported to other States, he added.
Sagar Cements attracted global attention a couple of days ago as Belgium-based Ackerman’s & Van Haaren (AvH), an independent, €2.1bn diversified group forayed into the Indian construction market by picking up 14.3 per cent stake in the Hyderabad-based company through open market.
Meanwhile, Sagar Cements has decided not to avail itself of the World Bank’s arm, IFC’s offer of US$19m credit line in the last financial year for ‘strategic reasons’. Though the funds were planned to be used in the expansion project, Sagar mobilised INR296 crore being used for expansion thorough a combination of loans from IDBI, SBI and SBH (INR196 crore), internal accruals (INR64 crore) and equity (INR36 crore), Mr Reddy said.
Published under Cement News
