Gujarat Ambuja board nod for Rs 1,519cr capex

The board of Gujarat Ambuja Cements has at its meeting held on Thursday, approved a capital expenditure of Rs 1519 crore towards further enhancing its cement capacity by 3 million tonne per annum.

According to an official release issued by the company to the BSE today, the expansion is being effected by setting up a new cement plant in Himachal Pradesh alongwith two split grinding stations.

The entire cement project alongwith grinding stations are likely to be commissioned by March 2009, the release said.

The company has also received all statutory approvals for its proposed merger with Ambuja Cement Eastern (ACEL). The proposed merger with be effective from January 01, 2006. The entire process of merger, including issue of equity shares of the company to the shareholders of ACEL would be completed by December 2006. Pursuant to this, the equity share capital of the company would stand increased to 151.6 crore equity shares of Rs 2 each, aggregating to Rs 303 crore.

With this merger, the total cement capacity of company is increased to 16 million tonne. Meanwhile, it is also implementing a Rs 1050 crore project for setting up a 3 million tonne cement plant at Chattisgarh alongwith grinding station in West Bengal which is likely to be commissioned by March 2009. With these two new cement lines, the total cement capacity of the company will be increased to 22 million tonne by 2009.