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Cement manufacturer NCL Industries Ltd is planning to set up a 30-MW captive power plant with Rs 150-crore investment.
“We are working on achieving financial closure for the proposed plant in next four/five months,’’ Mr K. Ravi, Managing Director, NCL Industries, told Business Line here on Monday.
The plant would be set up at its Mattapalli cement manufacturing unit in Nalgonda district of Andhra Pradesh.
“The objective behind planning our own power plant is to ensure a regular power supply for cement manufacturing activity as power supply had become very uncertain in the State,’’ Mr Ravi said.
In addition, the Hyderabad-based company hopes to sell the surplus power that will add to its revenue. Its total power-requirement is around 23 MW.
About Rs 100 crore would be mobilised through debt and balance from internal accruals, Mr Ravi said.
UTILISATION
The Rs 760-crore company is trying to achieve 100 per cent cement manufacturing capacity in about two years. At present, 60 per cent of 200 million tonnes production capacity is being utilised at two units at Mattapalli and Kondapalli in Krishna district of Andhra Pradesh.
It sells cement under ‘Nagarjuna’ brand in Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Maharashtra and Orissa.
“The growth drivers for us will be higher capacity utilisation and concentration of building materials division,’’ Mr Ravi said.
While cement contributes over 85 per cent of the company’s revenue, other segments such as ready-mix concrete, pre-fabrication, boards division bring in remaining revenue.
On Monday Its scrip gained 2.19 per cent on the Bombay Stock Exchange to end at Rs 42.
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