North India-based J K Lakshmi Cement has dropped its plan of last year to acquire a cement company in Egypt.
"We had been looking at capacities but we haven’t been able to find one so far. Also, international economic conditions are not conducive and it will not give us the returns as expected. So, we are not looking at that option any more,” said Shailendra Chouksey, director.
“In India, the valuations local players are seeking is very high. It is cheaper to put up greenfield (new) capacity than acquiring one.”
Part of the Hari Shankar Singhania group, the company has targets to achieve a total capacity of 10Mta by 2013-2014. It is setting up a split grinding unit of 0.55Mta in Haryana, which would increase production capacity to 5.3Mta by the end of the year. It is also setting up a 2.7Mta factory at Durg in Chhattisgarh, for INR1,200 crore, and a 1.5Mta facility at Udaipur.
Chouksey said: “The land acquisition process for our Durg plant has started. By October 2013, we will achieve a production capacity of 8Mta (by the entire group).