India’s Binani Cement to raise US$125m to boost capacity
The board of Binani Cement Ltd has approved raising up to US$125m in foreign currency for expansion of its production capacity and for overseas acquisition.
It plans to expand its annual capacity to 6Mt by the year-end from the present 4.5Mt, it said in a statement released over the weekend.
It also reported a net profit of INR539.5m for October-December, and earned revenue of INR6.42bn in the first nine months of the year that began April 1.
The comparable figures were not available as the company was hived off from its parent Binani Industries Ltd.
Meanwhile, the board of Binani Cement has approved a plan to raise about $150m (or about Rs 585 crore), partly to fund the Dubai acquisition and partly to increase capacity at its plant in Shandong in China. The Binani group bought a 49% stake in the Shandong Rongan Group’s cement company for Rs 44.4 crore.
In addition, the company says it is close to acquiring a cement unit in Dubai to make a foray into the Middle East.
"We are looking at some [cement] units in Dubai and planning to expand capacity in China to about 2.5Mt by March 2009, from 0.8Mt," said Binani Cement joint managing director Vinod Juneja.
Published under Cement News
