The Hindu Business Line : NCL plans particleboard plant in Himachal Pradesh

NCL Industries Ltd has decided to take up expansion of its clinker capacities and set up a cement bonded wood particleboard plant in Himachal Pradesh at a total capital outlay of Rs 65 crore.

In a press release, the company announced its expansion plans spread over the next one-and-a-half years to double its capacities for cement as well as boards manufacturing.

It has projected a total turnover of Rs 160 crore on completion of the expansion projects, against the current turnover of Rs 92 crore.

NCL's clinker facility at Nalgonda has a capacity of 2.97 lakh tonnes per annum (tpa).

It will be doubled to 5.94 lakh tpa. The project isbeing implemented as part of the Energy Efficiency and Conservation Project at a cost of Rs 23.84 crore.

The company hopes to save Rs 100 per tonne of cement production on completion of the project.

To use the increased clinker production, the company proposes to set up a grinding unit at Kondapally in Krishna district, taking into consideration the proximity to the market where the company already has the advantage of brand leadership.

This unit will produce puzzolana cement by using fly ash from the thermal power station in Vijayawada.

The grinding unit is estimated to involve an investment of Rs 19.8 crore.

The cement bonded wood particleboard plant in Himachal Pradesh will come up with a capacity of 50,000 tonnes a year at a cost of Rs 21.42 crore.

While the existing boards plant in Nalgonda district, with a capacity of 30,000 tonnes per annum, caters to the requirements of Maharashtra and the southern markets, the company expects the Himachal Pradesh unit to meet the demand from northern India.

Of the proposed total expansion cost of Rs 65 crore, NCL plans to finance Rs 43 crore by way of debt.

According to the company, the financial closure for more than Rs 20 crore was already completed with IREDA and the bank.

Further, the company said loan sanction of Rs 23 crore is at an advanced stage of consideration.

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