Coromandel Cements to increase capacity

Hyderabad, July 18 (UNI) The Coromandel Cements Limited will increase its production capacity to 2.4 million tonnes per annum in two phases in the next two years with an investment of Rs 700 crore.

In the first phase, the capacity would be increased to 0.9 million tonnes per annum with a capital expenditure of Rs 135 crore.

In the second phase, the production capacity would be increased by 1.5 million tonnes per annum with an investment of Rs 565 crore, Company Managing Director Ramesh Chandra said, in a release, here today.

The first phase of the project was expected to be completed by March 2009,'' he said, adding, the second would be completed in June 2010.

The Company's turnover was up by 31 per cent for the quarter ending June 2008 at Rs 22.19 crore over the corresponding previous quarter and profit after tax at Rs 4.23 crore.

The Company Board had recommended an annual dividend of 20 per cent for six months from October 2007 to March 2008.

The Board had also approved an allotment of 20,00,000 Convertible Warrants at a face value of Rs 10 each with a premium of Rs 230 each to the promoters and their associates on a preferential basis to part finance the company's expansion plans, the release added.

UNI SM DS 1901