RNRL mulls Rs 12,000 cr capex for cement, shipping foray

MUMBAI: Anil Ambani-controlled Reliance Natural Resources plans to enter cement manufacturing and shipping activities with an investment of Rs 12,000 crore.

"We will invest Rs 10,000 crore in cement business and Rs 2,000 crore in shipping," RNRL Vice-Chairman Anil Singhvi said on the sidelines of the company's annual general meeting here today.

"Our foray into cement and shipping will take 3-4 years period," Singhvi said.

Earlier at the meeting, RNRL Chairman Anil Ambani said that "we are actively considering entering into cement manufacturing with 20-million tonnes capacity".

For supporting its ambitious cement business, RNRL is looking to run a shipping service. It will help the company in transporting raw materials and finished products. At present, RNRL is engaged in sourcing, supply and transportation of various fuels along with exploration, production and distribution of gas.

"We will foray into shipping business with six ships to start with. It will operate between Indonesia and Krishnapatnam (in Andhra Pradesh), carrying coal from Indonesia," Ambani said.

"We re-positioned RNRL as a complete fuel management company, covering exploration, development and production, sourcing and supply, transportation and distribution activities," he said.

"We are now equipped not just to meet the fuel requirements of our group companies but of a wider market."