JK Cement to tap market to fund expansion
JK Cement is entering the capital market to raise about Rs 300 crore to finance its expansion plan. The second largest domestic white cement manufacturer will invest Rs 220 crore to set up a 13.2mW plant based on the waste heat recovery technology. The plant will use the waste heat emitted in the manufacture of cement. The Kanpur-based company will be among the first in the cement sector to use this technology.
The company is also setting up a 20mW captive power plant based on petcoke. “The new plants will improve our margins, as now fuel has 20 per cent share in the overall costs,” said Yadhupati Singhania, promoter and managing director of JK Cement. Commissioning of the captive plants in June next year will bring down the cement company’s energy costs to Rs 1.35 per unit from Rs 4.5 per unit now. At present, it has energy capacity of 40mW, 15mW of which is coal-based and the rest diesel-based. Given that oil prices are still high, the new plants will reduce its fuel costs.
JK Cement is also poised to increase its cement manufacturing capacity from 3.8Mta to 4.4Mta. “Our grey cement capacity will increase to 4Mta from the present 3.5Mta, and the white cement capacity will increase by 100,000t to 400,000t,” said A K Saraogi, president (corporate affairs) and chief financial officer.
The company, whose two grey cement-manufacturing facilities are based in Nimbahera and Mangrol, and the white cement unit is located at Gotan — all in Rajasthan, is investing about Rs 32 crore to enhance its capacities. Published under Cement News
