Birla Corp to invest Rs 1200 crore for greenfield expansion

Kolkata, Jul 17 (UNI) Beckoned by the soaring demand for cement in the country, Birla Corporation has planned to invest Rs 1,200 crore for greenfield expansion for doubling its production capacity by 2010.

" We have plans to go for an investment of Rs 1,200 crore for greenfield expansion by setting up new manufacturing units. This will push up our production capacity to ten million ton from the present 5.1 million ton, " Chairman R S Lodha told reporters at the end of the company's Annual General Meeting.

The selection of sites for the new plants and other details would be finalised by the end of this fiscal, he said.

The company was already engaged in expanding the production capacity of its existing units at Satna and Chanderia with an investment of Rs 290 crore.

The work, to be completed by 2008-09, would increase the capacity to seven million ton, Mr Lodha said.

To a question, the Chairman said the targetted turnover of the company was Rs 2,000 crore in 2007-08 and Rs 1,794 crore in 2006-07.

" The turnover is expected to swell due to the boom in the infrastructure sector and the growing demand for cement from the special economic zones and the retail chains coming up across the country, " he said.

To another question, Mr Lodha said the company had enough cash to go for the proposed investment and the debt-equity ratio was "very good".

UNI