Dalmia Cements to set up 4 million tonne greenfield plant in Andhra Pradesh

Dalmia Cements Bharat Ltd has announced that the Board of Directors of the Company at its meeting held on October 12, 2006, has decided the following:

1. To set up a greenfield cement plant of upto 4 million Tonne per annum capacity in Andhra Pradesh. For this purpose, the Company is proposing to take over Eswar Cements P Ltd., with a view to expand its South Indian footprint. The Company currently has 400 acres of land and adequate limestone reserves.

The Company currently operates a 3.5 Million Tonne per annum plant in Tamil Nadu and is a key supplier of cement in the South India markets.

2. It is working towards a close strategic alliance with OCL India Ltd (OCL). The alliance will include the Company taking a stake in OCL. The Board of the Company is taking independent professional advice on the structuring of this alliance which is expected to be concluded by February 2007.

It is also the intention of the promoters of the Company to substantially consolidate their holding in OCL into the Company the intentions of making the Company their primary vehicle for investment in the Cement business.

Source : Equity Bulls

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