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| Chettinad Cement lines up Rs 1,700 cr |
| BS Reporter / Chennai Dec 18, 2009, 00:34 IST |
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Plans greenfield plant at Gulbarga in Karnataka
Chettinad Cement Corporation Ltd is planning to increase its capacity to 13.4 million tonnes (mt) by 2013 from the current 7.5 million tonnes for which it would invest around Rs 1,700 crore.
Speaking to reporters after unveiling the company’s new corporate identity here on Thursday, MAMR Muthiah, managing director, Chettinad group, said as part of this, the company would set up a greenfield project at Gulbarga in Karnataka with an investment of around 700 crore in Phase I.
Besides, it would set up 45 mega watt capacity power generation plants and strengthen its logistics. Currently, the company produces 105 Mw. “The proposed investment in logistics and information technology will increase re-distribution and expand our footprint,” he added.
Chettinad Cement, which began operations with 0.2 mt in 1962, now produces 7.5 million tonnes across its plants at Puliyur, Karikkali and Ariyalur in Tamil Nadu. In the last three years, it invested Rs 1,200 crore. “By 2013, we want to be among the top eight cement companies in the country,” said M C Kini, president – business development, Chettinad Cement.
Stating that the investment would be funded through debt and internal accruals, he said the company had a debt of around Rs 900 crore.
As part of the expansion plan, the company is also planning to increase its dealership base to 4,000 from the current 2,500, added Kini. New dealers will be inducted across Tamil Nadu, Kerala and Karnataka. The company aims to penetrate deeper into Tamil Nadu and Kerala markets.
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