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Heidelberg Cement earmarks funds for expansion

Thursday, 25 Feb 2010
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Heidelberg Cement plans to increase its total capacity from 3.07 to 7.8 million tpa at an investment of Rs 1,200 crore by 2012.

The company is likely to expand its clinker manufacturing capacity from 1.2 to 3.1 million tpa at Narsingarh in Madhya Pradesh and cement grinding capacity from 1 to 2 million tpa at Imlai, also in Madhya Pradesh. It is planning to raise its cement grinding capacity from 0.8 to 2.7 million tpa at Jhansi in Uttar Pradesh.

According to sources, the company has a cash balance of Rs 493 crore, therefore it is unlikely to raise funds for the expansion in the next one-and-a-half years. After that, it might opt for a debt-equity option if required.

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