OCL to raise funds for new plant, India

OCL to raise funds for new plant, India

OCL India Ltd, part of the Dalmia Group, is planning to raise around US$40m from International Finance Corporation (IFC) to support investment for the company's new 1.35Mta grinding plant at Medinipur, West Bengal.

The US$102m plant will be located at Kulapachuria, Salboni sub-division. As a part of developing Godapaisal Industrial Park, the West Bengal Industrial Development Corporation has acquired and leased 154.43 acres of land to OCL as the anchor investor.

The IFC is evaluating an A-Loan of US$40m to part finance the project. The balance funding requirement will be met through Rupee debt and internal accruals, said the Corporation

The project is expected to be operational by January 2014.

The new plant will utilise clinker from OCL’s existing cement plant at Rajgangpur, Orissa and will manufacture 100 per cent Portland Slag Cement (PSC) to suit the market needs with an option to manufacture Portland Pozzolana Cement (PPC) or Ordinary Portland Cement (OPC) at a later stage depending upon market demand.

Clinker will be transported by rail from Rajgangpur while coal/slag/fly ash/gypsum will be transported by road. Cement will be dispatched both by road and rail.

IFC has already invested in OCL India, which is a leading cement producer in eastern India, with a capacity of 3.8Mta. The company started manufacturing cement in 1952. OCL also manufactures refractories.

Dalmia Cement (Bharat) Limited, the flagship company of the Dalmia Group, is the largest shareholder in OCL with a 45 per cent stake and the Dalmia family collectively controls 70 per cent in OCL. The remaining 30 per cent is owned by the general public and institutional investors.