According to GP Goenka, Chairman, Andhra Cements, the company’s Phase I capacity is to be increased to at least three million tonnes from the current capacity at 1.7Mt. The cost is likely to be Rs 100 crore, to be financed through debt and internal accrual.
No price hike is expected till the end of this year. Current prices are hovering around Rs 160-165 per bag. The company is looking to increase exports to 40,000 tonnes per month.
Firming up expansion plans will be done before the end of 2006. There is no long-term debt outstanding, except ICICI bank loans recently taken.