Cement and sugar player KCP is planning to expand production capacity of its cement unit located at Muktyala, Krishna district in Andhra Pradesh.
The company plans do double the production from current 1.8 million tonnes per annum to 3.5 MTPA.
Shedding light on its expansion plans, GN Murty, CFO, KCP told CNBC-TV18, that the company is spending around Rs 400 crore, which would be funded through internal accruals and loans. "Rs 100 crore would be internal accrual and rest would be raised from banks," he said.
It has also acquired land required for expansion of the unit, he added.
The company's current consolidated debt stands at Rs 460 crore and standalone debt at Rs 360 crore, Murty said.
Below is the verbatim transcript of GN Murty's interview with Latha Venkatesh and Nigel D'Souza on CNBC-TV18.
Nigel: We were looking at your expansion plans, we were looking at upping the capacity in one of your cement units from around 1.8 million tonnes to around 3.5 million tonnes. It is coming to only around Rs 400 crore, some part of that capex is already in the price, have you already acquired the land over there and also you are putting up a grinding unit or is there a clinker unit as well to back you up?
A: We already have the land, in the existing land we are expanding, no further acquisition.
It is not a grinding unit, it is normal cement.
Latha: You said that the cost is Rs 400 crore, where have you get the money from, how much is internal accruals and how much have you to take debt?