Kolkata-based FMCG major Emami is diversifying into the cement business and will invest Rs 1,750 crore to set up production units in the next three years.
As part of the new plan, group company Emami Cement will set up a fully integrated cement plant in Chhattisgarh with an installed capacity to produce 3.1 mn tonne. The company will also set up two grinding units, one in Orissa with an annual capacity of 0.6 mn tonne and another in West Bengal with 1.5 mn tonne a year capacity, simultaneously.
The construction of the Chhattisgarh plant, which will have a 40 MW power plant, will start by the middle of 2010 and is likely to be operational by 2012. Funding will be through a mix of internal accruals and debt, where the three projects will have a 2.5:1 debt-equity ratio and the group’s contribution will be Rs 500 crore. A major part of the investments will be on the Chhattisgarh plant. The product will be sold under the Emami brand and cater to the eastern region only.