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Rajkot-based Hi-Bond Cement plans to set up a new plant in Rajasthan with at estimated investment of Rs 1,300 crore. For this the company would raise fund from equity market.
"We are planning to set up a cement plant in Rajasthan. We have approached the Rajasthan government with a proposal. Their response was positive. Our team has identified seven locations in the state and we are hopeful to start this project as soon as possible," said managing director of Hi-Bond Cement Rajan Vadalia.
The company plans to complete the project in three years time. The plant will be set up at an initial production capacity of 3 million tonnes per annum.
Vadalia said, "We will invest about Rs 1,300 crore in Rajasthan to set up the cement plant. We will manage around 60 percent of amount ourselves and the remaining will be raised from the market."
To manage fund, Hi-Bond plans to come up with an Initial Public Offering (IPO) during the project period. The company is also open to private equity (PE) investment.
"We will also go to the banks to manage some funds. To manage the remaining funds, we are considering IPO and to go with PE," said Vadalia. With this plant, the company aims to tap into the market in North India. Meanwhile, the company recently expanded its Rajkot production facility from 6,60,000 tonnes to 1.30 million tonnes.
Kishan Group, now known as Hi-Bond Group, began production of Hi-Bond cement two years back.
The company doubled its turnover over the past two years from Rs 125 crore to Rs 250 crore.
The company already operates a mini-cement plant and markets cement under the brand name of 'Kishan Cement'.
