The Hindu : Andhra Pradesh / Hyderabad News : Bheema Cements plans expansion

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Monday, Oct 20, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Bheema Cements plans expansion

HYDERABAD: Bheema Cements Ltd, after the change of name from ‘Ckoramaandel Cements Ltd’, has emerged as a well established, premium and recognised brands, especially in the coastal areas of the State. It is in the process of modernising the annual manufacturing capacity to nine lakh tonnes by March next and 24 lakh tonnes by 2010. Once the expansion is in place, it would lose the status of a mini-cement plant and emerge as a major manufacturer.

S.R.B. Ramesh Chandra, Managing Director, told a press conference here on Friday that the company’s expansion plan by March 2010 would cost Rs.700 crore. The loan component would be Rs.400 crore. The balance was being met by way of internal accruals, preferential allotment of 20 lakh shares to the promoters at a premium of Rs.230 a share and placement of equity with a private investor. The financial closure was expected by January next year. The capacity to nine lakh tonnes was modernised at an estimated cost of Rs.135 crore, which was being met by a term loan of Rs.95 crore from Axis Bank, ICICI Bank and United Bank of India. The balance was being brought in by internal accruals. He said after the expansion, the company planned to enter Tamil Nadu and Karnataka.

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