Heidelberg Cement India Ltd on Wednesday said it would increase its total capacity to 6 million tonne per annum (mtpa) from 3 mtpa at present at an investment of Rs 1,200 crore over a period of 3 years. The company?s net profit for the year ended December 2009 stood at Rs 134 crore compared with Rs 132 crore in 2008.
The company has announced expansion of its clinker manufacturing capacity from 1.2 mtpa to 3.1 mtpa at Narsingarh in Madhya Pradesh and cement grinding capacity from 1 mtpa to 2 mtpa at Imlai, also in Madhya Pradesh. The company will also hike its cement grinding capacity from 0.8 mtpa to 2.7 mtpa at Jhansi in Uttar Pradesh.
Ashish Guha, MD, told FE, ?We will invest about Rs 1,200 crore in capacity expansion to 6 mtpa. As we currently have a strong cash balance of Rs 493 crore, we do not require any fund raising for the next one-and-a-half years. After that, we might go for a debt-equity option if required.?
The work on the expansion has already begun and it is expected that the commercial production would commence in the first quarter of 2012, the company said.
Heidelberg’s shares on Wednesday grew 1.16% to close at Rs 43.55 on the Bombay Stock Exchange.
Heidelbergs net sales during the year 2009 increased by 13% year-on-year to Rs 936 crore thanks to better realizations. Volumes grew 2% over the last year. ?The full year net profit was flat because the company paid income tax of Rs 40 crore for the first time after a gap of nearly 15 years,? revealed Guha.
With the total outstanding debt of Rs 2 crore, net cash balance stood at Rs 493 crores as on December 31, 2009.