JK Cement is planning to undertake brownfield expansion at its Mangrol plant in Rajasthan. It is likely to set up a 5,000 tonne per day production capacity at the site. The company is expected to expand its grey cement capacity by 2.2 mn tonne at existing site and grinding facility at split location in north India by 1.8 mn tonne. The expansion entails an investment of Rs 1,500 crore, of which Rs 900 crore will be funded through debt and Rs 600 through equity. The company will also set up a captive power plant of 25 MW to cater to the plant's power requirement. The project is scheduled for completion by September 2012.
Currently, the company manufactures grey cement in two facilities at Nimbahera and Mangrol in Rajasthan. It has 7 mn tonne of capacity in the north and 3 mn tonne of capacity in the south. The company made a capital expenditure of Rs 170 crore in 2010 and plans to spend Rs 250-300 crore in 2011 and Rs 700 crore in 2012.
Contact: JK Cement. Website: www.jkcement.com