Shiva Cement proposes to invest Rs 163 crore to expand its capacity from 0.66 million tonne per annum to 2.96 mtpa to meet the region's rising demand.
Orissa-based company proposes to fund the project with a term loan of Rs 80 crore, while the remaining will be arranged through internal accruals. It also proposes to come out with a rights issue or preferential allotment of equity shares soon.
Buoyed by increased demand from the housing sector, Shiva Cement recorded a 55.7 per cent increase in dispatches during the first half of the current financial year. Shiva Cement markets its products under the ACC brand as the latter holds 14.3 per cent equity in the company. Total dispatches jumped to 52,579 tonne during the first half ended September 2009 from 33,692 tonne in the corresponding period of the previous year.