VicatSagar To Raise Upto Rs 400 Cr Through Debt And Equity

VicatSagar Cement Ltd, a 51:49 JV between French Vicat and AP based Sagar Cements is raising about Rs 400 cr through debt and equity to part finance its Rs 1,600 cr cement plan in Karnataka.

The 2.7 mtpa integrated cement plant will come up near Chatrasala village, Gulbarga district in Karnataka, on the border of Andhra Pradesh.The project consists of the first phase of a two-phase development program and also involves the construction of a 40 MW captive power plant, a waste heat recovery unit and necessary infrastructure to accommodate a doubling of the plant’s capacity when the two-phase program is completed in the future.

The project is scheduled to start commercial operations in 2012 and is expected to create close to 600 direct and over 1500 indirect jobs around the region both during the construction and operational stages.

Vicat, the majority owner is a multi-regional manufacturer and distributor of cement, aggregates, ready-mix concrete and related building materials and has a cement production capacity of 18.6 mtpa spread over 11 countries. Sagar, the other main shareholder, has a production capacity of 2.6 mtpa.

Vicat, during June 2008, bought a stake in Sagar Cements and also agreed to form a Rs 2,500-crore JV with the Hyderabad-based cement maker. Vicat picked up a 6.67% stake in SCL for Rs 70 crore at Rs 700 per share.

Both the companies during the transaction had detailed that the JV will be financed through a capital contribution of Rs 720 crore, with SCL contributing Rs 196 crore and Vicat putting in Rs 524 crore.

SCL, which has one cement making facility in the Nalgonda district, is undergoing expansion to take its overall capacity to 2.5 million tonnes by July and its clinker capacity to 2.35 million tonnes by July.

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