Mid size cement manufacturers plans major expansion
Orient Cement plans to spend around Rs 3,600 crore until 2023 to almost double its capacity to 15 MT. The expansion entails adding clinker and grinding units to its existing facilities at Devapur in Telangana by March, 2021. This will be followed by adding 3 MT grinding capacity at Kalaburagi in Karnataka, and a likely split grinding unit in Bengaluru.
Penna Cement, plans brownfield expansions in the South and East and, later, a greenfield project in the North. The company is still to decide the funding route for its planned greenfield expansion, which will entail three integrated cement plants in the northern markets, built with an estimated cost of around Rs 2,000-2,500 crore. The company could either use the IPO route or look at taking on debt. Eventually the company may choose to raise Rs 1,500 crore from the market.
JK Cements would add 8 MT to its existing output to take the total capacity to 18 MT by 2022, expanding its footprint into the central and eastern markets from its base market in the limestone deficit north India.
Vicat Cement, which fully acquired its Indian partner Sagar Cement in 2014, is also expanding. Based again out of the southern market, the company will be spending Rs 1,735 crore on expansions to add 4 MT to its existing capacity of 2.75
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