Sagar Cements - Andhra Acquisition Aids To Reach 10 Mtpa Capacity: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.South India based cement manufacturer Sagar Cements Ltd. has an installed capacity of 8.25 million tonne (South-5.75 million tonne, Central-1 mt and East-1.5 mt). Sagar Cements has a total captive power capacity of 66.85 mega watt. In contrast to its previous predominant exposure to South India, it has now increased its market presence in the East and Central regions as well, which are seeing rapid growth. Key highlights: The resolution plan for the company's purchase of Andhra Cements, which would enable it to reach its goal of 10 mt by FY25E, has been authorized by the National Company Law Tribunal. Sagar Cements will purchase an integrated operation with 1.65 mtpa clinker capacity, 1.8 mtpa cement capacity and 30 m captive power plant in the Guntur District, Andhra Pradesh (Durga Cement Works). Moreover, it will purchase a 0.8 mtpa grinding facility in Vizag, Andhra Pradesh (Viskha Cement Works. Sagar Cements is considering closing this plant and may try to monetise the land in the long term. It has envisaged spending Rs 7.62 billion on this acquisition besides a capex of Rs 850 million. Also, the board has authorised an additional capex of Rs 4.7 billion to increase the Durga Cement Works unit's clinker capacity to 2.3 mtpa and cement capacity to 3 mtpa..Click on the attachment to read the full report:.Cement Sector Check - Volatility In Prices; Demand To Revive On Back Of Pre-Election Spending: IDBI Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sagar Cements - Andhra Acquisition Aids To Reach 10 Mtpa Capacity: Nirmal Bang

The acquisition of Andhra Cements will allow Sagar Cements to further solidify its foothold in the Southern regions.

Choose a plan