Narmada Cement Set To Double Capacity To Three Million Tonnes

Studies conducted by the company show that the project will cost Rs 500 crore, said V D Chowgule, the company chairman, while addressing shareholders at the company's 18th annual general meeting here.

The investment also includes creation of bulk cement terminals along the coast which will reduce transport costs significantly, Chowgule said.

The company is increasing its clinker production capacity to enable a total cement production of 1.2 million tonne from the present one million tonne capacity.

The first phase of investments for the additional cement grinding unit as well as the clinker production plant will be met through internal accruals and some borrowings. Of course all this will not be sufficient to raise the funds required to establish the new klin. It may become necessary to access the primary market and also borrow from the funding institutions, the chairman said.

The company has also identified a site for the creation of a coal handling terminal within its existing mining area.

The clinker production at 9.78 lakh tonne was slightly lower by about 2.5 per cent during 1995-96 as compared with the previous year which was which was due to the major jobs that had to be undertaken to improve the performance of the plant, he said.

Production and sales during the first five months of the current year have shown an increase of about 4 to 5 per cent. The turnover has increased from Rs 70.45 crore to Rs 82 crore, an increase of 16 per cent, he added.

In 1995-96, the total income of the company crossed the Rs 200-crore mark.