Century Plyboards India Ltd (CPIL) has planned Rs 1,630 crore investments for setting up new cement, plywood, particle board as well as fibre board facilities.

Mr Sajjan Bhajanka, Managing Director of CPIL, told Business Line on Sunday that the company's 70 per cent-owned, unlisted subsidiary Cement Manufacturing Co Ltd (CMCL) was putting up a new 1.75 million tonnes (mt) fresh clinker capacity at Lumshnong in Meghalaya through its subsidiary Star Meghalaya Cement Ltd.

It is also setting up a clinker grinding unit of 1.6 mt at Guwahati in Assam. It has planned to build a new 1.6 mt grinding facility at Kahalgaon in Bihar.

All these would take the cement capacity of CMCL to 4.4 mt from current 1.2 mt a year at an investment of Rs 1,100 crore. Long-term borrowings from six banks worth Rs 745 crore have already been tied up.

“We have planned to mop up additional resources worth between Rs 150 crore and Rs 200 crore through placement of CMCL shares to a private equity firm for these projects. The balance amount would be funded through our internal accruals,” Mr Bhajanka added.

Andhra Pradesh project

Century Plyboard has taken up greenfield projects for setting up a unit for manufacturing 600 cubic metres per day (cmpd) medium density fibre boards and 1,000 cmpd particle boards in Nellore district of Andhra Pradesh at a cost of Rs 500 crore. Financial closure of the project is expected in September. The units would be commissioned by the end of next financial year, he added.

“We are putting up a Rs 30-crore new plywood unit at Kandla in Gujarat. Around 17 acre land has been purchased to construct the unit, which would be ready by April 2012.”

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