JK Cement aims to double capacity in 5-7 years

JK Cement Ltd is undertaking several expansion projects to cement its position in the domestic as well as international markets.
   
The Kanpur-based Indian company is setting up a 0.6Mta white cement plant at Fujairah in the United Arab Emirates and plans to add 3Mta capacity at its existing facilities in India by September 2014.
   
According to its annual report for 2012-13 (Apr-Mar), JK Cement will also expand wall putty capacity by 0.2Mta at its Gotan plant in Rajasthan by September 2013.

The company expects cement demand to grow 7% in 2013-14 with revival in the infrastructure investment climate. While demand for white cement is expected to grow 10%, wall putty is seen growing 25% in 2013-14.

"We aim to mobilise our resources and capital and double our capacities by the next five to seven years," Managing Director and Chief Executive Officer Yadupati Singhania was quoted as saying in the annual report.
   
"We plan to expand our grey cement capacity from 7.5Mta to 15Mta… white cement and wall putty capacities from 0.4Mta (400,000tpa) to 1.2Mta  and 0.3Mta (300,000tpa) to 0.6Mta (600,000tpa), respectively," he said.

The company also plans to widen its geographic presence and foray into international markets with the Fujairah plant, which is expected to be commissioned by March.
   
"These endeavours will help us cater to the countries comprising the Gulf Cooperation Council and the African construction markets," JK Cement Chairman Gaur Hari Singhania was quoted as saying in the annual report.
  
JK Cement also plans to expand its facilities at Mangrol in Rajasthan and Jhajjhar in Haryana. This will lead to an additional capacity of 3Mta.
 
"We are setting up an integrated plant, having the capacity of 1.5Mta cement grinding capacity, 25 MW coal-based captive power plant and 10MW waste heat recovery power plant at Mangrol and 1.5Mta cement grinding capacity at split location in Jhajjhar," the company said.

A total capital expenditure of INR17.34bn (US$0.29bn) has been earmarked for the two facilities, JK Cement said, adding it has already achieved financial closure for the same.