BUSINESS

Dalmia Cement's brownfield project

CHENNAI, MARCH 3. Dalmia Cement Bharat will be setting up a brownfield project near its existing facility at Dalmiapuram in Tiruchi (Tamil Nadu) that will see the capacity go up to 3.5 million tonnes from the existing around 1.1 million tonnes.

Along with the cement capacity expansion, the company is also putting up a 29-MW captive thermal plant. The total cost of the project is expected to be around Rs. 500 crores.

According to M. C. Kini, Executive Director of the company, Dalmia Cement will use a combination of options ranging from internal accruals to debt fund and external commercial borrowings to finance the expansion project.

The expansion is expected to fructify inside two years. The board of the company met in New Delhi today and approved the capacity expansion plans.

In a telephonic conversation with this correspondent, Mr. Kini said a lot of re-alignment was now happening in the cement industry. To a query, he said the supply over-hang was seen only in Andhra Pradesh.

Among the oldest players in Tamil Nadu, Dalmia is known for the manufacture of special cements. These basically find applications in airstrips, railway sleepers and oil wells. The company has well known brands such as Dalmia Super Roof, Dalmia Foundation and Vajram.

For the quarter ended December 2003, the company notched up a gross income of Rs.108.85 crores, net sales of Rs. 97.57crores and a profit after tax of Rs. 6.24 crores.