Company in the process of expanding its Cement Grinding capacities
The cement industry in India has experienced a robust growth trajectory, underscored by the government’s intensified focus on infrastructure development and the revitalization of the real estate sector, JK Lakshmi Cement Ltd https://www.jkcement.com/ .
“Anticipated to sustain its vigour, the demand for cement is poised to remain robust, propelled by governmental initiatives aimed at significant infrastructure projects, including the construction of highways, railways and affordable housing https://www.worldcement.com/ ,” said the company along with full financial year 2023-24 results, demonstrating robust operational performance and a steadfast commitment to sustainability.
It noted the Government’s continuous campaign to champion infrastructure development https://www.conexpoconagg.com/ as a pivotal catalyst for economic growth. In the recent Union Budget for 2024-25, substantial allocations have been directed towards pivotal infrastructure endeavours.
These are:
• Rs. 2.5 trillion designated for the construction of highways and expressways https://morth.nic.in/ .
• Rs. 1.5 trillion allocated for the enhancement of the railway https://www.siemens.com/global/en.html infrastructure, including the expansion of the metro rail network http://alstom.com .
• Rs. 1 trillion earmarked for the construction of affordable housing units under the Pradhan Mantri Awas Yojana (PMAY) http://mohua.gov.in.
“The promising forecast for housing real estate sales, along with the government’s sustained focus on enhancing logistics infrastructure http://bombardier.com , presents tremendous opportunities for us,” said Vinita Singhania, Chairperson & Managing Director, JK Lakshmi Cement Ltd.
“These developments allow us to contribute to national advancement while continuing to lead in sustainable cement production,” Singhania said on 24 May https://attentionindia.com/ .
• The Company’s Subsidiary, Udaipur Cement Works Ltd (UCWL) had successfully commissioned its second Clinker Line of 1.50 million tonnes per annum in October 2023, whereby its Clinker Capacity has doubled to 3 MTPA http://sbi.co.in . The Cement Grinding Capacity of 2.5 MTPA was commissioned in March 2024.
• The Company is in the process of expanding its Cement Grinding capacity at its Surat Grinding Unit from 1.35 MTPA to 2.7 MTPA. The Project is likely to cost Rs.225 crores to be funded through Term Loans from Bank of Rs.150 crore and balance through Internal Accruals https://www.ibef.org/ .
• The Company is expanding the Clinker Capacity at its integrated Cement Plant at Durg in Chhattisgarh by putting up an Additional Clinker Line of 2.3 MTPA and Four Cement Grinding Units aggregating to 4.6 MTPA at Durg in Chhattisgarh. It is also expanding at Three Split Location Cement Grinding Units with aggregate Cement Grinding Capacity of 3.4 MTPA at Prayagraj in Uttar Pradesh, Madhubani in Bihar & Patratu in Jharkhand. The Project is likely to cost Rs.2,500 crores and is proposed to be funded through Term Loans from Banks of Rs.1,750 crores as well as balance through Internal Accruals http://niti.gov.in .
• The Company is also putting up a Railway Siding at its Durg Cement Plant at a cost of Rs.325 crores to be funded through a Debt of Rs.225 crores & balance from Internal Accruals.
It has acquired 85% stake in Agrani Cement Private Limited at a total Purchase Consideration of Rs.325.11 crores. Consequent to this acquisition, Trivikram Cement Private Limited, Mahabal Cement Private Limited & Avichal Cement Private Limited, wholly owned subsidiaries (WOS) of Agrani Cement Private Limited have become the step-down subsidiaries of the Company. These step-down subsidiaries together with Agrani Cement Private Limited (jointly called as “Trivikram Consortium”) have been jointly granted Mining Rights having Limestone Reserves of approx. 335 MTPA.
For FY2023-24 ended 31 Mar, JK Cement posted a PAT of Rs.487.87 crore, up from Rs.369.11 crore in the previous year. It reported net sales of Rs.6,788.47 crore, up from Rs.6,451.50 crore a year ago. Fiinews.com
