×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Century Textiles mulls Rs3,245 cr capex in cement, paper

Century Textiles mulls Rs3,245 cr capex in cement, paper
Comment E-mail Print Share
First Published: Sun, Jul 06 2008. 02 14 PM IST
Updated: Sun, Jul 06 2008. 02 14 PM IST
PTI
Mumbai: B K Birla Group-controlled Century Textiles and Industries Ltd plans a capital outlay of Rs1,800 crore for its cement capacity expansion programme, besides Rs1,445 crore in its pulp and paper division for setting up new units.
“The accentuated emphasis on improved infrastructure and education will result in increased demand for cement and paper,” Century Textiles’ chairman, B K Birla, said in the chairman’s statement in the annual report.
An increase in investments in textile machinery and the Central Government’s support also signal a positive mood for the textiles industry, Birla said.
The company now plans to expand its cement manufacturing capacity from 7.80 million tonnes a year to 11.80 million tonnes, the company said in its annual report.
The capacity expansion is expected to be achieved by setting up a new clinker line of the capacity of 2.50 million tonnes and an equivalent cement grinding facility adjacent to the existing plant of Manikgarh Cement at Gadchandur in Maharashtra, along with a captive thermal power plant of 40 MW and as planned earlier, the 1.5-million-tonnes-per-annum cement grinding unit at Sagardighi in West Bengal.
The company has received environment clearance from the Ministry of Environment and Forests and it has taken possession of 159 acres of land in West Bengal.
The expansion of cement capacity is expected to be operational within three years from the placement of orders for the plant and machinery, the company said.
Century has also taken up major expansion plans for its pulp and paper division involving a capital outlay of Rs1,445 crore.
The company’s prime grade tissue paper plant is running on schedule and is expected to be operational by about November. The total cost of the project is expected to be around Rs175 crore.
In view of diversifying further and catering to the growing packaging paper board demand, the company is setting up a 500-tonnes-per-day multi-layer packaging board plant and a 40MW power generation plant at an investment of Rs775 crore.
The board plant is proposed to be installed adjacent to the existing pulp and paper plant at Lalua in Uttarakhand and is expected to be operational by December 2009.
Century is also installing an eco-friendly fibre line to produce best quality wood pulp, with a capacity of 450 tonnes per day and a chemical recovery boiler of 1,200 tonnes to meet the requirements of pulp for the paper board plant.
The fibre line will also help enhance paper production at Uttarakhand. The estimated investment for the expansion is Rs495 crore and the plant is likely to be operational by December, it said.
The company said that it has obtained necessary permission to develop the available mill land at Worli in Mumbai for commercial purposes.
In the fabrics and apparel segment, its new textile mill Birla Century is set to launch a super-fine range to provide a boost to its ready-to-wear brand, the company said.
Comment E-mail Print Share
First Published: Sun, Jul 06 2008. 02 14 PM IST