Clock-maker Ajanta Limited (AL) is mulling to set up a cement manufacturing plant with a capacity of around 15 million tonnes per annum in Kutch. The Morbi-based group plans to make an investment of Rs 1000 crore in a phased manner. The plant is expected to start operations in 2010.
Ajanta has applied for lime mining area. To begin with the plant will have a capacity of three million tonnes per annum which will subsequently be scaled up to 15 million tonnes per annum. The company has already started hunting for land in Kutch for the cement project.
The company will tap capital market with its maiden public offer to fund the project. The size of the IPO may be anything between Rs 300-600 crores. The rest will be raised through a mix of internal accruals and debt.
Confirming the development, Dharmendra Patel, general manager, Ajanta said, "As our group believes in economies of scale, we want to enter into the production of cement on a large scale. Given the decent growth of construction activity in the country and high margins, our group is eager to set up a cement plant in Kutch and we are now waiting for an allotment of mining area before finalising the size."
"The all details will be finalized after the declaration of state government's new mining policy. We have applied for mining licence in Shinapat, Lakhpat and Abdasa in Kutch," he added.
After starting off with manufacturing clocks, the company diversified into ceramics, CFL, e-bikes and snackfood businesses. For the financial year 2007-08, the company recorded turnover of around Rs 200-225 crores and for the fiscal 2008-09, it has been projected turnover of around Rs 300 crores.
