JK Lakshmi Cement is planning to invest about Rs 8,000 crore over a six-year timeline, in order to scale up capacity to 30 million tpa from the projected 18 million tpa by end of FY24. The company’s overall aim is to ramp up to 30 million tpa by 2030.
To achieve its immediate capacity expansion plans, the company is currently expanding capacity at its subsidiary, Udaipur Cement Works in Rajasthan by 2.5 million tpa. It involves a brownfield expansion with a clinker and cement-making capacity of 1.5 million tpa and 2.5 million tpa, respectively, entailing an estimated capex of Rs 1,650 crore.
The commissioning is likely in the next few quarters, which will position the company among the ten cement manufacturing companies in India. Rs 850 crore has already been incurred till FY23.
The company which recently entered east-central Uttar Pradesh is pursuing both organic (expansion route) and inorganic (such as acquisitions) growth, and is currently exploring land buy for greenfield opportunities at Nagaur (Rajasthan) and Kutch (Gujarat).
Apart from this, it also has significant proven reserves at its operational limestone mines in Rajasthan, allowing for the brownfield expansion. However, new mining assets in Rajasthan and Gujarat are yet to start operations.
While the Centre’s push is expected to fuel demand in infrastructure projects as well as housing and construction activities, the company witnesses nearly 62-65 percent of the demand from the housing sector, 20–25 percent from infrastructure projects, and the remaining from industrial and commercial activities.
