Jaiprakash Associates Limited, a flagship company of Jaypee Group, has embarked on a Rs 900 crore cement manufacturing expansion that would see its total capacity going up to 10Mt from the current 7Mt "We are setting up a three million tonnes plant in Himachal Pradesh at an investment of Rs 900 crore. The plant is likely to be completed by 2007," Mr Manoj Gaur, Managing Director of Jaypee Group, told reporters.
Since construction of hydroelectric power plants and presence in the engineering and construction business are the focus areas for the Group, having more cement manufacturing facilities makes a business sense, he said.
Asked about the source of funding for the expansion plan, Mr Gaur said the group would be using part of Rs 430 crore proceeds from the recent Foreign Currency Convertible Bond (FCCB) issue. "Of the Rs 430 crore, Rs 250 crore will be used for setting up new 3Mta plant and we have also arranged Rs 500 crore loan from ICICI and few other banks at an interest rate of nine per cent," he said. Besides this, the group is also reportedly eyeing acquisitions in the cement sector.