Orient Paper & Industries (OPIL), a CK Birla group firm, has decided to foray into newer domestic markets for its cement business.
The total capex for this expansion is projected at Rs 320 crore, which is funded through internal accruals, rights issue proceeds and debt. OPIL is also in the midst of setting up a captive power plant of 50 mw with a capex of Rs 190 crore, which is expected to be operational by March 2009. It currently sells 55% of its cement in the western region in highly lucrative Maharashtra and 40% in the southern region, mainly Andhra Pradesh.
The companys cement division manufactures and markets Portland Pozzolana Cement (PPC) under the brand, Birla A1, and Ordinary Portland Cement (OPC) under the brand name of Orient Gold. Its cement division is among the most profitable in the Indian cement industry, aided by locational advantage of its various plants and high-quality limestone reserves.