The BSE-listed KCP Ltd is planning to invest around Rs 187 crore, including for its proposed foray into hospitality sector. The other investment includes setting up a captive power plant.
The company has said it is planning to set up a 2x18 mega watt (Mw) captive power plant at the site of New Cement Unit II at Muktyala, Andhra Pradesh. The estimated cost of the project is Rs 164 crore and it has received a term loan of Rs 114 crore from the banks.
The basic input for the proposed project, coal, will be procured under the Coal Linkage System for which necessary applications have been made and approvals awaited, according to the company’s annual report.
Meanwhile, the company has said, expansion of cement production undertaken by way of greenfield plant at Muktayala, with a capacity of 1.52 million tonne was partly commissioned in May 2011.
The final commissioning, however, coincided with a recovery in cement prices which witnessed a downward trend in the earlier part of the year, said the company.
The company’s combined capacity would be 2.18 million tonnes now. Other investments include the second phase of expansion of foundry at an estimated cost of Rs 60 crore which is expected to taken up during the second half of the current fiscal.
Meanwhile, the group is planning to foray into hospitality sector by setting up a hotel in Hyderabad at a cost of Rs 63.02 crore, excluding land.
Around Rs 45 crore has already been sanctioned by the bank as term loan towards the project which will have 130 rooms. “The company has tentatively agreed on preliminary terms for a management contract and operation of the hotel with a leading international hotel chain.
The brand under consideration has models perceived as a business hotel in the upper middle segment in the four star category,” said the company in the annual report.
The company has registered a gross turnover of Rs 361.72 crore during the year ended March 31, 2011, compared to Rs 411.75 crore, a year ago, i.e. a drop of around 12 per cent. It is into various business including engineering which accounts for 36.13 per cent of the sales, cement (61.86 per cent), power (0.14 per cent) and others (1.87 per cent).
