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KCP Ltd has finalised plans to set up a 36 MW coal-based power project at its new cement plant to secure power availability.
The company, which earlier this year completed the expansion of its cement production to 2.13 million tonnes a year against 6.60 lakh tonnes previously, is also exploring new markets, including options to export cement, according to Mr V. L. Dutt, Chairman and Managing Director, KCP.
The diversified company, which is into cement, engineering and sugar, is soon set to enter the hospitality sector.
Mr Dutt said that with the addition of the 1.52 million tonnes a year at Muktyala, in Krishna District, Andhra Pradesh, the company has finalised plans to set up the Rs 164 crore captive power plant and has sought coal linkages.
Currently, the company is dependent on imported for its cement plant. It now imports about 15,000 tonnes of coal a month, about half its requirement.
Over the next two years the company is also looking at further expanding the cement plant to three million tonnes. There are adequate limestone reserves to support this capacity for the next fifty years, he said. The first cement unit is in Guntur District.
The immediate challenge is of marketing the expanded cement output, especially at a time when the industry has seen a major growth in capacity. KCP will have to enter into new markets, including Orissa and parts of Maharashtra, apart from exploring options of exports.
The company is also investing Rs 70 crore in a 3/4-star hotel with 110 rooms in Hyderabad. The project is under implementation and KCP is in the finals stages of discussion with a leading international chain to manage the hotel, he said.
The project is coming up on land owned by the company in the heart of the city.
The division which manufactures machinery for the sugar and cement industries has an order backlog of Rs 140-150 crore. It is looking at expanding its foundry capacity by about 50 tonnes from the present 100 tonnes. The programme also envisages de-bottlenecking and will totally involve about Rs 60 crore.
Sugar
The company, which owns two sugar mills, of 6,000 tonnes a day capacity and a 1,000 tonne mill in Vietnam, is likely to expand the smaller mill. The details of the plan are being worked out, he said.
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