J&K cement to expand capacity

J&K cement to expand capacity
Published: 06 January 2004

J&K Ltd is planning to expand the capacity of its existing plant in Jammu by 600tpd involving an outlay of Rs 64.16 crore.  Of the Rs 64.16 crore, the Planning Department has already agreed to release Rs 22.91 crore towards the equity share capital on the basis of debt equity ratio, while the balance is being arranged from financial institutions as term loan.  The Board has agreed in-principle to hire Holtec Consulting Private Ltd (HPLC) for the expansion programme, which is to be completed within two years.  The Board said the company was expecting a net profit of Rs 2.75 crore by the end of the current fiscal against Rs 2.54 crore last year. Its turnover has increased to an all time high of Rs 2271.29 lakh during the first two quarters against Rs 2235.54 lakh during the corresponding period last year.  Managing Director Mian Mushtaq Ahmed informed the Board that the Company is debt free and is meeting its expenditure from own resources without any budgetary support from the government. To reduce the production cost, he said the company is planning to manufacture fly ash-blended cement. He said a Rs 8.60-crore project has been formulated in consultation with ITCO for setting up a 300-tonne per day capacity clinker grinding/packing plant in Jammu.  Jammu and Kashmir was presently importing about 700,000t of cement while the production in the state was about 1500tpd. With the installation of this plant, the imports would reduce by 100,000t annually, he added.