JK Lakshmi plans to invest about Rs1,000 cr for expansion

JK Lakshmi plans to invest about Rs1,000 cr for expansion
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First Published: Sun, Jul 22 2007. 01 37 PM IST
Updated: Sun, Jul 22 2007. 01 37 PM IST
By PTI
New Delhi: JK Lakshmi Cement Ltd plans to invest about Rs1,000 crore in the next 4 years for expansion that includes doubling manufacturing capacity through a greenfield unit and by adding volume at the existing plant.
The company’s existing cement facility at Sirohi, Rajasthan has a capacity of 3.4 million tonnes.
“We have drawn a plan to double our cement capacity to 7 million tonnes from the current 3.4 million tonnes. The company is also setting up seven ready mix concrete plants across the country,” JK Lakshmi Cement Whole-time Director Shailendra Chouksey told PTI.
Asked about the investment for expansion, Chouksey said: “The investment for doubling the capacity and setting up seven RMC units would be close to Rs1,000 crore.” The investment would be funded through debt and internal accruals.
He said the company would invest about Rs250 crore to expand its capacity to five million tonnes at its existing facility and setting up RMC units.
Besides, he said the company plans to set up a 2 million tonnes greenfield unit, which would take the total capacity to 7 million tonnes capacity by 2010-11 fiscal.
“We are working on the required formalities for taking the mining lease,” he said, without disclosing the site where it plans to set up the new unit.
Chouksey said setting up of the greenfield plant, work on which is expected to start this fiscal, would entail an investment of about Rs700 crore.
With the continued focus of government on infrastructure and housing development, he said the outlook for the cement industry for the next 2-3 years looks buoyant.
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First Published: Sun, Jul 22 2007. 01 37 PM IST