Kolkata: The Emami Group will diversify into infrastructure with an entry into cement manufacturing and realty, for which it has build up a warchest of Rs3,500 crore ($864 million), to be used over the next 2-3 years.
“We want to get into infrastructure for its huge potential. Realty and cement-making will harness business opportunities within the segment and these plans will be funded from our warchest of Rs3,500 crore to be pumped in from different businesses over the next 2-3 years,” Emami Group director Aditya Agarwal told PTI.
The group has interests in healthcare, paper, writing material and personal and healthcare products. Emami, the only listed entity in the group, makes FMCG products.
Speaking about the group’s plan to enter cement manufacturing, Agarwal said Emami has signed an MoU with the Chattisgarh government for setting up a 4MT plant in two phases and a 100MW captive power plant in the state.
The project implementation is expected to be completed in three years with an investment of Rs1,600 crore, Agarwal said. The record date of the project was yet to be finalized.
“We have requested the Chhattisgarh government to allocate suitable area for limestone mines and also recommend the case to the Union government for allocation of suitable coal block for the proposed plant, Agarwal said.
A new company will be formed by the group for the cement project. Financing would be done in a mix of equity and term loans from financial institutions in 2:1 ratio.
The company said the integrated cement project to be implemented in two phases will help generate an employment of 2000 people directly and indirectly.
On the realty foray, Agarwal said the group had been using the consortium route to execute projects, but will now create a fully-owned subsidiary to enter the sector.