Shriram aims to raise Jayajothi Cements’ utilisation
Indian engineering company Shriram EPC, which earlier this year acquired a majority stake in Sree Jayajothi Cements, plans to raise the cement plant’s capacity utilisation to 100 per cent.
In March this year, Shriram EPC was forced to buy the 70 per cent stake in its debtor Sree Jayajothi Cements which couldn't pay back its dues. Shriram's debt was converted to equity. Jayajothi Cements currently has a 3.2Mta integrated works situated in Kurnool district in Andhra Pradesh, southeast India.
In an interview with the Economic Times of India, Shriram’s managing director T Shivaraman said that the key priority is making a “good, profitable, successful, business out of Sree Jayajothi Cements,” adding that the company is looking to raise output and solve the issue of power shortages. “We need to put in more money in building the captive power plant and infrastructure and see if we can take the capacity to 100 per cent in the next couple of years. Last year, we had 35 per cent capacity utilisation. The target is to take it to 60-65 per cent this year. If we need to take it to 100 per cent, we need power. Captive power will be running in 18-20 months. We will see how things and demand move. There is enough space and limestone to expand the capacity to 6Mt,” he said.