World Bank’s private investment arm International Finance Corporation (IFC) is lending $40 million to Orissa-based cement producer OCL India Ltd to part fund a greenfield plant in West Bengal, according to a company disclosure.
OCL is setting up 1.35 million tons per annum (MTPA) greenfield cement grinding unit at Medinipur, West Bengal. The investment cost of the project is estimated at $102 million and IFC is looking to come in with a loan of $40 million. The balance funding requirement will be met through rupee debt and internal accruals.
As a part of developing ‘Godapaisal Industrial Park’ the West Bengal Industrial Development Corporation has acquired and leased 154.43 acres of land for the project to OCL as the anchor investor.
OCL is a part of the Dalmia Group, with Dalmia Cement (Bharat) Ltd owning 45 per cent stake in the public listed firm. The Dalmia group collectively holds 70 per cent stake in OCL with the remaining 30 per cent held by general public and institutional investors.
Dalmia Cement (Bharat), a subsidiary of Actis-backed Dalmia Bharat Enterprises, is in turn backed by private equity giant KKR.
Founded in 1949, OCL India Ltd (Formerly Orissa Cement Ltd.) is engaged in the manufacture of refractories. OCL’s Refractory plant is situated at Rajgangpur with a total installed capacity of 1,06,400 million tonnes per annum to produce the various types of refractories.
(Edited by Prem Udayabhanu)