Hi-Bond Cement to build a new cement plant in Rajasthan

According to the Business Standard, Hi-Bond Cement, based in Gujarat, India, is planning to build a new 3 million tpa cement plant in the western state of Rajasthan. The company will invest some Rs.1300 crore in the project, which will take around three years to complete. The new facility will allow the company to penetrate the market in the north of India more effectively.

Rajan Vadalia, Managing Director of Hi-Bond Cement, commented that the company was keen to start construction as soon as possible, having already submitted a proposal to the state government, whose response was positive, and identified seven potential locations in Rajasthan for the new unit.

The company will reportedly invest around Rs.1300 crore to set up the cement plant. Vadalia stated that approximately 60% of the financing will come from the company itself and the rest will be raised from the market, with some of the funding being managed by the banks. To manage the remaining funds, the company is open to private equity investment and plans are in place to set up an Initial Public Offering (IPO) during the construction period, where shares of stock in the company will be sold to the general public on a securities exchange.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/18032014/hi_bond_cement_to_build_a_new_cement_plant_in_rajasthan_908/