The Hindu Business Line : Anjani lines up Rs 170 cr for capacity expansion

The company is also in the process of acquiring Hitech Print Systems, a modern printing press in Vijayawada, for about Rs 10 crore and a grinding unit.

G. Naga Sridhar

Hyderabad, Aug. 6 Anjani Portland Cement Ltd has lined up an expansion programme of over Rs 170 crore to augment its capacity over the next 18 months.

“Our target is to achieve 1.2-million-tonne capacity by December 2009, the tenth year of our operations,” Mr K.V. Vishnu Raju, Managing Director, told Business Line here.

The expansion project would add 0.8 mt to the existing capacity of the company, which currently operates a 600 TPD rotary kiln plant at Chintalapalem in Nalgonda District of Andhra Pradesh. The capacity addition would be done at the same location. “We have already finalised the order for machinery which will be coming to us in the next 16 months,” Mr Raju said.

Turnaround case

The company is in the process of graduating from the ‘Mini Plant’ status, he said, adding: “Anjani Cement exemplifies a turnaround case of a non-operating unit into a healthy dividend paying company within a short span of 7 years. We have major plans in the next two years.”

The firm is also eyeing a big opportunity for catering to the national market. “Our plant now stands enroute a new railway line being sanctioned to connect Chennai and Bhubaneswar eliminating the need to travel up to Bibinagar (near Secunderabad). This makes the logistics easy for us and makes the national market more accessible to us,” Mr Raju said.

Anjani Portland already has some customers in Bangalore and Chennai besides Andhra Pradesh.

Acquisition on

The company is also in the process of acquiring Hitech Print Systems, a modern printing press in Vijayawada, for about Rs 10 crore and a grinding unit currently under the possession of Andhra Pradesh Industrial Development Corporation. “These are in line with our diversification and expansion programme,” Mr Raju said.

Funds for the expansion project would be mobilised through internal accruals and bank loans, he said, adding that the company had active credit lines.

In the financial year 2006-07, Anjani Portland posted a net profit of Rs 12.5 crore.