Gujarat Ambuja Cements approves Rs.1519 crores capital expenditure

Gujarat Ambuja Cements Ltd has announced that the Board of Directors at its meeting held on December 14, 2006, approved a capital expenditure of Rs 1519 crores towards further enhancing its cement capacity by 3 million tonnes per annum by setting up a new cement plant in Himachal Pradesh alongwith two split grinding stations. The entire cement project alongwith grinding stations are likely to be commissioned by March 2009.

The Company has also received all statutory approvals for its proposed merger with Ambuja Cement Eastern Ltd (ACEL). The proposed merger with be effective from January 01, 2006. The entire process of merger, including issue of equity shares of the Company to the shareholders of ACEL would be completed by December 2006. Pursuant to this, the Equity Share Capital of the Company would stand increased to 151.6 crores Equity Shares of Rs 2/- each aggregating to Rs 303.2 crores.

With this merger, the total cement capacity of Company is increased to 16 million tonnes. Meanwhile, Company is also implementing Rs 1050 crores project of setting up 3 million tonnes cement plant at Chattisgarh alongwith grinding station in West Bengal which is likely to be commissioned by March 2009. With these two new cement lines, the total cement capacity of the Company will be increased to 22 million tonnes by 2009.

Source : Equity Bulls

Keywords