JK Cement expansion on track, India

JK Cement expansion on track, India
Published: 04 April 2006

The capacity expansion programme of both white and grey cement are on schedule say JK Cement India. According to Mr A.K Saraogi, President, Corporate Affairs and CFO the capacity expansion programme of both white and grey cement are on schedule and fresh capacities are likely to be commissioned in June. "For the co-generation power projects we have already placed orders. This too is on schedule. Moreover, our plants have registered 100 per cent capacity utilisation in the last fiscal," he said. JK Cement is the only second white cement manufacturer in India after Grasim Industries.

JK was earlier a division of JK Synthetics Ltd. It has three factories and all are located in Rajasthan. While the grey cement capacity is being raised from 3.5Mta to 4Mta, the white cement’s production capacity would be increased to 0.4Mta from 0.3Mta.

Meanwhile, JK Cement is waiting for the feasibility report for its proposed 3Mta greenfield integrated cement plant in Karnataka. The report is being prepared by the global cement consultancy major Holtec Engineering. According to Mr Saraogi, the consultant is looking into all important aspects, including market potential and optimum size of the plant. "The report is likely to be readied within the next one month and subsequently it would be placed before the board of directors.

In all probability, we would take a final call on this matter in the last quarter of 2006," he said. The Karnataka Government has already offered mining lease to Jaykaycem Ltd, a special purpose vehicle floated for this project. The mines are at Mudhgol near the Goa-Karnataka border. The approximate cost of setting up this plant, which would have co-generation power facility and a grinding unit, is pegged around Rs750 crore (approx US$168m) - abstracted from Business Line.