Kolkata-based FMCG major Emami is diversifying into cement business and will invest Rs 1,750 crore to set up production units in the next three years.
“We are diversifying into the cement business, considering the potential and demand of it in the country, particularly in the eastern region. The total investment for the venture will be around Rs 1,750 crore for the next three years,” Emami Group Direct or, Mr Mohan Goenka said.
As part of the new plan, group company Emami Cement will set up a fully integrated cement plant in Chhatisgarh with an installed capacity to produce 3.1 million tonnes.
The company will also set up two grinding units, one in Orissa with an annual capacity of 0.6 million tonnes and another in West Bengal with 1.5-million-tonne a year capacity, simultaneously.
“We have already acquired 400 acres of land in Chhatisgarh for starting up an integrated plant there. At the same time, we will also start constructing grinding units in Orissa and West Bengal as well,” Mr Goenka said.
The construction of the Chhatisgarh plant, which will have a 40MW power plant, will start by middle of next year. The plant is likely to be operational by 2012, he added.
On the funding of the investments, Mr Goenka said it will be through a mix of internal accruals and debt.
Source: The Hindu Business Line