Prism Cement plans Rs16-18 bn expansion

Prism Cement plans Rs16-18 bn expansion
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First Published: Wed, Sep 05 2007. 01 04 PM IST
Updated: Wed, Sep 05 2007. 01 04 PM IST
Reuters
Mumbai: India’s Prism Cement Ltd plans a capital expenditure of Rs16-18 billion (Rs1,600-1,800 crore, $400-450 million) over the next four years, managing director Manoj Chhabra told Reuters on Wednesday, 5 September.
The expansion will be funded mainly through internal accruals and the company may look for short-term loans if required, he said.
The company is setting up two clinker units with an annual capacity of 2 million tonnes each in Madhya Pradesh and Andhra Pradesh, Chhabra said.
“We have already got the mining lease for the Andhra Pradesh unit,” he said.
Prism Cement also plans to diversify into other areas and has formed a joint venture with Australia’s QBE International (Investments) Pty Ltd for general insurance.
“We want to be a diversified company and insurance is an emerging business in India,” he said.
Under the agreement, Prism will invest Rs740 million to pick up 74% in the venture.
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First Published: Wed, Sep 05 2007. 01 04 PM IST