Murli Agro Products (MAPL) has decided to enter the Indian cement market. The company is setting up a 2.1Mt greenfield cement manufacturing plant in the Chandrapur district of Maharashtra with an investment of Rs 578 crore. MAPL, which has interests in paper manufacturing, solvent extraction and captive power generation would mobilise debt of Rs 347 crore from various banks, while the remaining amount will be generated through internal accruals. “We are looking at various avenues for expansion.
In the initial stage the cement unit plans to supply cement to Marathwada, Vidharbha, western and southern Maharashtra.
Bank of Baroda is the lead bank for arranging debt for the project and has sanctioned Rs 85 crore as term loan. State Bank of Patiala has sanctioned a term loan of Rs 100 crore. Many other banks have given an in-principle approval, Mr Maloo said.