OCL India

IFC support to OCL will help enhance cement production

IFC, the private sector arm of the World Bank Group, is supporting an expansion in production capacity at OCL India Limited, a cement producer in one of the most underdeveloped states of India. IFC will provide a loan of $50 million to the company, formerly known as Orissa Cement Limited.

The IFC financing will help OCL build and operate a new kiln line of 1.3 million tons per year clinker production capacity at OCL's existing cement plant site at Rajgangpur, Sundergarh District of Orissa. It will also help the company set up a cement grinding unit of 9 lakh tons per year at Kapilas, Cuttack district, Orissa.

Sujoy Bose, Regional Manager for IFC South Asia, said, "IFC's loan will help one of India's oldest cement producers grow and remain competitive while enhancing employment opportunities in the region. This will also increase the availability of cement, a critical raw material for infrastructure development. In addition to providing long-term funds, IFC will advise the company on developing and implementing an integrated community development plan and on adoption of higher environmental, health, and safety standards." The project is particularly significant given a growing demand for cement and a corresponding shortfall in capacity in eastern India.

Gaurav Dalmia, Joint President of OCL, said, "IFC, with this long tenor financing, will help us consolidate OCL's position in a capital intensive industry, manage our risks and costs vis-à-vis global players and serve our chosen markets more effectively. We also look forward to IFC's guidance in the improvement of our environmental and social standards." IFC's loan of 10 years' tenor will also encourage other local banks to make long-term project finance available to manufacturing companies such as OCL.

The Indian cement industry is fragmented, with over 40 players, although recent years have seen a trend towards consolidation. IFC's funding comes at a time when cement demand has been outpacing the increase in supply.

Moneycontrol

PDL acquires additional 50% stake in its JV company

Parsvnath Developers Ltd., one of India’s leading real estate developers, today announced the acquisition of stake of its joint venture partner in Parsvnath Landmark Developers Pvt. Limited (PLDPL). PLDPL, which was a 50:50 joint venture company between Parsvnath Developers Limited (PDL) and OCL India Limited, will now be a wholly owned subsidiary of Parsvnath Developers Limited.

Parsvnath Landmark Developers Private Limited is a real estate development company with two key commercial and residential projects under implementation. This involves the construction and development of a Shopping Mall at Faridabad and a high end premium residential project at Khyber Pass, Delhi. The two projects are expected to add substantially to PDL’s topline.

‘Mall Manhattan’, the mall being built by PLDPL, is nearing completion and is expected to become operational very soon.

‘Parsvnath La Tropicana’ is the residential project at Khyber Pass, a prime residential area in Civil Lines, North Delhi. The plot has been purchased from DMRC for construction, on which work is likely to begin shortly

Commenting on the takeover, Mr. Pradeep Jain, Chairman, Parsvnath Developers Limited, said, “This takeover by PDL will come as good news to our investors, as the revenues from the projects will start accruing in the current fiscal itself. The residential project will further be benefited by the new Master Plan of Delhi and will add considerably to the topline and bottom line of the company”

Moneycontrol