The Emami Group of companies is diversifying into a new business. A Kolkata-based group with interests in personal and healthcare businesses, the group has decided to foray into the cement segment.
It has just signed a memorandum of understanding (MoU) with the Chattisgarh government for setting up a 4 million tonne cement plant. The proposed project also entails setting up of a 100 mw captive power plant in the state. Total outlay on the project is estimated at Rs 1,600 crore.
Elaborating, Emami group of companies joint chairman R S Goenka said the project will be undertaken by a new company which the group intends to float. The integrated project to be implemented in two phases will be completed in three years
The proposed project will be financed by a mix of equity and term loans from financial institutions. “Though nothing has been finalised as yet, some Rs 1,200 crore will be the debt component. Balance Rs 600 crore will be equity,” Mr Aditya Agarwal, director, Emami group of companies, said.
Incidentally, the group has also sought “area for lime stone mines from the Chattisgarh state government and recommend the case to central government for allocation of suitable coal block for the proposed plant.”