Sagar Cements is planning to spend Rs 120 crore in laying a private railway line, in order to improve its market reach and cut freight costs. This 7-km railway line will connect its plant, near Matampally in Nalgonda district of Andhra Pradesh, with the main railway line.
The entity will raise the Rs 98 crore out of the proposed investment of Rs 120 crore from debt and the remaining from internal accruals. The line is expected to be completed by FY2015 and dispatches by rail are expected to go up 20% thereafter.
