Thursday, December 9, 2010

INDIA: Dalmia Bharat to set up cement mills in Karnataka, Meghalaya



Cement company Dalmia Bharat Enterprises Ltd Friday announced it would set up of two plants in Karnataka and Meghalaya with a combined capacity of five million tonnes per annum at an outlay of Rs.2,500 crore.

"The expansion move is in line with the company's focus on becoming a pan-India player. Looking at the fundamental drivers of the sector, we believe it is good to begin with the capex," said Puneet Dalmia, managing director, Dalmia Bharat Enterprises.

An official of the company said that land has been acquired and funds have been tied up for the project.

The official told IANS the project will be funded to the tune of 70 percent by debt but declined to share the lender's details.

She said the project will be under Dalmia Cement Ventures Ltd, a wholly owned subsidiary of Dalmia Bharat Enterprises.

The group through Avnija Properties holds cement plants in Tamil Nadu and Andhra Pradesh with a total capacity of nine million tonnes per annum.

The group had earlier announced that it had licence to set up cement mills in Belgaum and Gulburga in Karnataka.

Last year the group had started marketing its cement in Karnakata from its Andhra Pradesh plant.

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