New Delhi: Binani Cement Ltd plans to invest over Rs900 crore in the next three years in setting up greenfield plants both in domestic and overseas locations to take its overall production capacity to 15 million tonnes by 2011-12.
While the company has firmed up about Rs800 crore investment for setting up a new plant in Gujarat with an installed capacity of up to 2.5 million tonnes, it also plans to set up a unit in Mauritius with a proposed capacity of two million tonnes.
“During Vibrant Gujarat Investor Summit, we are signing an MoU with the state government to invest about Rs800 crore to set up a plant with an installed capacity of up to 2.5 million tonnes,” Binani Cement Managing Director Vinod Juneja told PTI.
The plant, which will be set up at Junagarh district in Gujarat, is expected to be operational in the third quarter of 2011, he added.
Besides, the company plans to set up a unit in Mauritius with an initial capacity of one million tonnes as there is no cement plant in that country, Juneja said, adding the capacity will be scalable up to two million tonnes.
Asked about the source of funding, Juneja said: “For the Gujarat project we are funding through debt-equity of 1:1 and for this our financial tie-up has been completed. Loans will be syndicated by five banks.”
At present, Binani Cement has an installed capacity of 6.5 million tonnes in India with two plants in Rajasthan and the NCR region. Post-expansion, the company would have a capacity of nine million tonnes in the country.
“We are targeting to reach 15 million-tonne capacity by 2011-12,” Juneja said.