Century Textile plans Rs 6,300-crore capex

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Mumbai, Jul 23 : Century Textile and Industries Ltd on Wednesday announced that the company has planned a capex of Rs 6,300 crore to be spent over a period of five years in the expansion of its cement division, pulp and paper division and development of Century Mill land.

The capex of Rs 6,300 crore will be funded through a mix of debt and equity. However the ratio was not revealed.

Kumar Mangalam Birla, who chaired the company's annual general meeting in Mumbai, said, "In the view of the closure of Century Mills, the company has decided to develop the available mill land at Worli, Mumbai for commercial purpose."

The company intends to use this 40 acre land for the purpose of hospitality services, IT/ITES or other commercial purposes which is subject to various permission and approvals yet to be obtained. "The total investment on this will be Rs 2,600 crore," said Birla.

Moreover, the company has modified to expand its cement manufacturing capacity to 11.80 million tonne per annum from 7.80 million tonne per annum. For this the company will spend Rs 1,375 crore for setting up a new clinker line of 2.50 million tonne and an equivalent cement grinding facility adjacent to its plant in Manikgarh cement in Maharashtra and another Rs 425 crore in 1.50 mtpa cement grinding unit in West Bengal.

The cement expansion is expected to be operational within 3 years from the placement of orders for the plant and machinery.

"For the pulp and paper division, the company has planed a capex of Rs 1,445 crore and Rs 455 crore for general corporate purpose," he adds.

Century Textile and Industries Ltd shares on Wednesday were up 6.37% or Rs 30.50 to close at Rs 509.15 on the Bombay Stock Exchange.

However, the company's prime grade tissue paper plant is running on schedule and is expected to be operational by about November. The total cost of the project is expected to be around Rs 175 crore. In view of diversifying further and catering to the growing packaging paper board demand, the company has decided to set up a 500 tonne per day multi-layer packaging board plant and a 40 MW power generation plant at an estimated investment of about Rs 775 crore.