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G. Naga Sridhar

Hyderabad, June 1 Sagar Cements Ltd will be commissioning its Rs 296-crore brownfield clinker and cement plants in July.

This would push up the cement production capacity of the Hyderabad-based company from 0.6 million tonnes a year to 2.5 million tonnes while the clinker capacity would shoot up to 2.1 million tonnes from 0.5 million tonnes.

“Operationally, the additional capacities will flow in from July, which will make a big difference to us,” Mr Srikant Reddy, Director, Sagar Cements, told Business Line.

About 70 per cent of the production would be sold in Andhra Pradesh and the rest would be exported to other States, he added.

Sagar Cements attracted global attention a couple of days ago as Belgium-based Ackerman’s & Van Haaren (AvH), an independent, €2.1-billion diversified group forayed into the Indian construction market by picking up 14.3 per cent stake in the Hyderabad-based company through open market.

AvH is engaged in contracting and dredging, real estate and related services, private banking and private equity.

When asked about the development, Mr Srikant Reddy declined to comment as the company’s board was scheduled to meet soon to announce fourth quarter results. “The transaction was through the open market. Of late many private equity players have approached us to invest from across the globe,” he said.

Sagar Cements has decided not to avail itself of the World Bank’s arm, IFC’s offer of $19 million credit line in the last financial year for ‘strategic reasons’. Though the funds were planned to be used in the expansion project, Sagar mobilised Rs 296 crore being used for expansion thorough a combination of loans from IDBI, SBI and SBH (Rs 196 crore), internal accruals (Rs 64 crore) and equity (Rs 36 crore), Mr Reddy said.

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