Chettinad Cement's expansion plans are on track with the company commissioning a 2.5-million-tonne a year factory in Karnataka, said a senior executive in the company.

This plant, which was commissioned in the fourth quarter of 2011-12, paves the way for its entry into the western markets – North Karnataka and Maharashtra. The next phase of expansion will be in in Dachepalle, Guntur District, Andhra Pradesh, where a 3.5-million-tonne greenfield plant will come up.

Land acquisition is on and the approvals are under process. The company has entered into an agreement with the State Government for the project, the official said.

Speaking in the context of the company's proposed delisting from the stock exchanges, the official said the move will not in any way impact its expansion plans. The company has opted for internal accruals and bank debt to fund the projects.

The company, with an annual cement production capacity of over 11.5 million tonnes (mt) across three units in Tamil Nadu, has announced plans to add nearly 15 mt over the next three years.

In Maharashtra, the company plans to set up a 2-mt a year cement grinding unit to facilitate market reach. It is also planning a grinding unit of a similar size in Visakhapatnam.

The company is also planning to add to its captive power generation with a 30-MW coal-based plant to add to its existing 105 MW. This will make it fully self-sufficient in power. The addition will be in place by March next year, the official said.

On the buyback of shares from the public as a prelude to the delisting, the official said the company estimates that this would cost over Rs 250 crore. The public shareholding at over 11 per cent is about 44 lakh shares. The exact pricing will be done through a reverse book building process, the official said.

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