Binani Cement Plans To Invest Rs 1,800 Cr

Mumbai: Binani Cement on Tuesday said it plans to invest around Rs 1,800 crore over the next three years to put up two greenfield plants, one in Gujarat and the other in the eastern region of the country.

The company, which recorded more than 200 per cent rise in net profit for the quarter ended September 30, 2007 at Rs 47.87 crore as against Rs 15.11 crore during the corresponding period last fiscal, plans to fund the proposed capital expenditure through an equal debt-equity ratio, company's Deputy Managing Director Vinod Juneja told reporters here.

"We are currently producing 5.3 million tonnes (MT) of cement a year. We plan to take it to 12 MT by 2011-12," he said, adding the proposed plants are at nascent stage and once crystalised, the company would seek the board's approval.

Binani had embarked on a Rs 575-crore capacity expansion programme at its two adjoining plants in Rajasthan two years ago to increase the capacity from 2.25 MT.

Its capacity will increase further to over 6 MT by the fourth quarter of the current fiscal as it completes a one MT production facility at Neem Ka Thana in Northern Rajasthan.

Stating that both the proposed plants would have 2.5 to 3 MT capacity each, Juneja said it requires 400-500 acres of land to put up a plant of that size.

"The location for the plant in the eastern region has not been identified yet. We are working on that," he said.