New management to inject cash into Essa Cement

New management to inject cash into Essa Cement
Published: 07 April 2005

The new management of Essa Cement in Pakistan has planned to inject fresh funds in the company and name it as Al-Abbas Cement, while the board of directors has also approved 200 per cent right share issue, sources told Daily Times on Wednesday. “The group has decided to inject funds to strengthen the company,” said a well-placed source.  It is estimated that after the fresh investment the authorized capital of the company would rise to around Rs 1.5 billion from current Rs 500 million. Increased construction activity in the country, acceleration in economic growth and above all the estimates of further improvement in the economy promises better business for the cement company, he said.  The company’s plant is situated 86km from Karachi port, at Nooriabad Industrial Area, Kalo Kohar, District Dadu. He said the group made a feasibility report regarding the company’s functionality before acquiring its shares. “We saw it as a good investment opportunity,” he said. “We think the company’s capacity has been under utilised and its earnings can be improved with some efforts.”