Announcement of Indian Company to Build Million Tons Cement Plant on August 26, 1981

IFC Press Release No. 82/4 Wednesday, August 26, 1981 Indian Company to Build Million Tons Cement Plant An approximately $98.7 million, one million metric tons-a-year cement project will be implemented at Kalamalla, Andhra Pradesh, by an established Indian fertilizer manufacturer, Coromandel Fertilisers Limited (CFL). Indian Financial Institutions, which is a group of public sector insti- tutions led by the Industrial Development Bank of India, are lending some $51.6 million. The International Finance Corporation (IFC), an international develop- ment institution that assists the private sectors of developing countries, is lending about 815.9 million. Internally generated funds, public deposits and short-term borrowing, a small Government grant, and contingent financing complete the financial plan. The new cement plant will be based on the latest dry process technology and will be one of the first of its size operating in India. Production is expected to reduce India's growing reliance on imported cement and will result in estimated foreign exchange savings of $50 to $60 million a year. The project includes the development of a limestone quarry, a plant based on a 3,000 tons-per-day rotary kiln using coal for fuel, and ancillary facilities. Coromandel is entering the cement business for the first time. The Company was established in 1964 to produce complex fertilizers and expanded its capacity a decade later. It is majority Indian owned and its shares are widely held by institutional and individual Indian investors. [Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 HT Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394.1