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Our Bureau

Hyderabad, June 28

Sagar Cements Ltd plans to source debt of $19 million from IFC, the World Bank arm, to part finance its Rs 300 crore expansion project in Nalgonda district of Andhra Pradesh.

The Hyderabad-based company has planned Rs 100 crore equity and Rs 200 crore debt for the project. “The IFC has undertaken due diligence and we are hopeful of getting the long-term, fixed tenure loan,” Mr Srikanth Reddy, Managing Director said.

The company plans to raise the equity part from internal accruals. For the debt portion, it has obtained loans of Rs 100 crore from IDBI and Rs 45 crore from SBI. The IFC has shown interest to fund the expansion project, which involves the addition of an extra kiln at the cement factory in Nalgonda, which is a prominent cement producing centre in Andhra Pradesh, he said.

The company achieved a turnover of Rs 112.82 crore in 2006-07 as against Rs 76.22 crore the previous year, recording 48 per cent growth.

The profit after tax for 2006-07 increased to Rs 30.02 crore on a consolidated basis (Rs 4.05 crore).

Sagar Cements is expanding capacity from 0.65 million tonnes (mt) to 2.5 mt. The financial closure for the expansion project has been completed and it is expected to become operational by June 2008.

More Stories on : Credit Market | New Projects | Cement | Financial Institutions

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