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My Home plans to raise cement output to 10 mt

My Home plans to raise cement output to 10 mt
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First Published: Mon, Nov 09 2009. 11 25 PM IST
Updated: Mon, Nov 09 2009. 11 25 PM IST
Hyderabad: Aimed at gearing up to next boom in infrastructure and realty sectors in the country, the Hyderabad-based My Home Industries Ltd plans to more than double its capacity to 10-million tons in five years, said its chairman and managing director, J. Rameswar Rao.
My Home, one of the largest cement manufacturers in Andhra Pradesh, now has a capacity of 4.7-m tons. Rao said the company plans to initially double the capacity of its slag cement facility to 3-m tons at Visakhapatnam to cater to markets in the Eastern India with high demand for slag cement.
The company is also considering a plan to set up at least a 2-m ton Greenfield plant in the borders of Andhra Pradesh and Karnataka to cater to down South markets, involving an investment of some Rs1,000 crore.
Admitting that the South Indian cement market now has excess capacities, leading to pressure on margins, he said, “We are preparing for a long-term game and gearing up with capacities to meeting future demand.”
In a bid to spread its geographic presence both for manufacturing and marketing, My Home is also considering a plan to enter the Central Indian market with a manufacturing facility of 2-m ton at Rs1,000 crore investment, said Rao. Though the preference would be on setting up Greenfield projects, the company is not averse to acquisitions with good opportunity, he said.
The Irish construction and building materials giant CRH had in May last year acquired 50% stake My Home, which posted revenue of Rs1,109 crore and a profit of Rs 357 crore with reserves of some Rs1,300 crore for fiscal to March, said Rao.
“We are a debt-free company and can leverage on our profits and reserves, apart from fresh equity funds from the Indian and Irish promoters to meet the expansion plans,” said Rao.
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First Published: Mon, Nov 09 2009. 11 25 PM IST