City-based GNG Group, which has its mainstay in international trading, on Wednesday said that it will spend Rs 450 crore to establish an integrated cement plant with an annual capacity of one million tonnes in Meghalaya.
The first phase of the project, at an estimated cost of Rs 250 crore, will go on-stream by April 2010 with a capacity of .6 million tonnes, while the Rs 200 crore second phase is expected to be completed in 2011.
“We have made financial closure for the first phase which has a debt-equity ratio of 70:30 and the cost for the second phase will be met through internal accruals,” GNG Group Director Vineet Agarwal said.
The cement venture is likely to generate Rs 200 crore of business in the first year which, in turn, will hike the group's turnover from Rs 500 crore, at present, to Rs 700 crore, GNG Group Chairman GN Agarwal said. “We are developing a plan for the group’s cement business, which calls for investment to the tune of Rs 1,500 crore in the next 5-6 years,” he added.
The conglomerate is also exploring opportunities to set up hydel and thermal projects not exceeding 100 MW.
