Bheema Cements plans capacity expansion

Hyderabad: Bheema Cements (formerly Ckoramaandel Cements) is planning to invest Rs 567 crore in setting up a new manufacturing line of 15 lakh tonnes capacity at its plant in Ramapuram of Nalgonda district in Andhra Pradesh.

“We are expecting the financial closure for the proposed brownfield project by January 2009. Once completed, Bheema will have a cement production capacity of 24 million tonnes an annum,” Mr S.R.B. Ramesh Chandra, Managing Director, Bheema Cementsm, said.

The company would mobilise Rs 400 crore from banks as loan and the balance would be met by diluting the equity and bringing in a private equity player (for an investment of Rs 100 crore).

The Rs 135 crores, first phase of expansion, which is currently underway at Ramapuram, would be completed by March 2009. “This will take our capacity from three lakh tonnes a year to nine lakh tonnes,” he said.