Dalmia to invest INR14bn to expand capacity
Dalmia Cement (Bharat) Ltd plans to invest INR14bn to more-than-double its capacity to 8Mt by March 2009, a senior company official said on Monday.
Dalmia’s present capacity is 3.5Mt.
"We are seeing a very healthy demand-growth environment," Managing Director Puneet Dalmia told an analysts conference call.
Dalmia plans to raise INR9bn in debt and the remaining from internal accruals to fund the expansion plans.
The company said the capacity addition will come up at its greenfield plants in Kadapa (Andhra Pradesh), to be commissioned by September 2008, and its Ariyalur plant (Tamil Nadu), to be commissioned by March 2009.
Puneet Dalmia told analysts that the company witnessed challenges in pricing in its sugar business. The contribution of sugar to Dalmia’s gross sales fell to 15 percent in 2006/07 from 29 per cent in the year ago period, its annual report showed.
Dalmia Cement plans to acquire 21 percent stake in OCL India Ltd by merging Dalmia’s subsidiary, Dalmia Cement (Meghlaya) Ltd, into the cement and refractory business of OCL.
OCL is spinning off its steel and real estate business, Dalmia said, adding it will acquire the stake after the reorganisation process was complete.
Published under Cement News
