New Delhi: Infrastructure major Jaiprakash Associates (JAL) will invest Rs4,000 crore by 2009 to increase its cement capacity by more than three-fold to 25 million tonnes to meet the growing demand of the building material in the country.
The company has a total cement capacity of 7 million tonnes at four plants in Madhya Pradesh and Uttar Pradesh. It will scale this up to 25 million tonnes, after setting up new plants in Himachal Pradesh, Haryana, Gujarat and Madhya Pradesh, by December 2009, Jaiprakash Associates executive chairman Manoj Gaur said.
The company had acquired UP Cement Corporation last year and production from the unit would commence soon, Gaur said.
The capacity expansion would require an investment of Rs4,000 crore, of which Rs2,500 crore is already under way, he said, adding that the expansion is being funded through internal accruals.
Gaur said with the country’s economy growing at over 8%, sectors like infrastructure would require huge investment. Cement manufacturers in the country have already lined up investments to the tune of Rs50,000 crore to create capacity of 80 million tonnes in the next three years to meet the growing demand of cement, he said.
“Indian cement makers have always put up capacity before demand to meet deficits in the industry,” he said.