CEBBCO plans to expand capacity, to raise Rs 60cr term loan

Commercial Engineers and Body Builders Company's (CEBBCO's) Rs 100 crore capex programme got underway to enhance its commercial vehicle body production capacity. CEBBCO plans to fund the capex programme with a term loan of approximately Rs 60 crore and the rest would be from internal accruals, said whole time executive director Ajay Gupta. He expects to add the capacity sometime in the beginning of next financial year.

"Even if the industry does not grow or none of the OEMs see any increase in volumes, we would see almost 4-5 times growth in the number of vehicles at current volumes," Gupta pointed out.
The company might get an order from BHEL very soon. Going forward, the power segment would become a strong focus area for the company, he added. Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video. Q: Can you run us through the details of the capex programme. How are you planning to fund it?
A: We are basically looking to enhance our tipper production capacity. We will fund it with a term loan of approximately Rs 60 crore and the rest would be from internal accruals. Q: If a part of it is close to about Rs 60 crore from term loans, what will the total debt in books stand at?
A: We don