JK Lakshmi Cement to expand capacity in northern and western India

05 Aug 2021 CW Team

JK Lakshmi Cement Chairman and Managing Director Bharat Hari Singhania told the media that the company will selectively invest in augmenting existing capacities in the northern and western markets in the coming years to increase its footprint and market share.

According to the most recent annual report of the company, it has devised ambitious growth plans that include expanding its manufacturing base, introducing new products, and entering new markets.

The company anticipates a significant shift in construction technologies and practices, resulting in an exponential increase in demand for ready-to-use value-added construction products.

JK Lakshmi Cement has a combined capacity of 13.3 million metric tonnes per annum (mmtpa). The company was recently awarded two limestone mining blocks via e-bidding, one in central Rajasthan and the other in coastal Gujarat.

Singhania claimed that each of these can support a cement capacity of at least 5 million mtpa for at least 40 to 50 years. In the coming years, the company will invest to advance the operationalisation of these new mining blocks, allowing it to compete not only in existing markets but also to open new ones.

Singhania added that if cement demand in April 2020 was slightly higher than 4 mt, it was lower in March. While the first represents a complete economic downturn, the second represents a burgeoning hope full of promise.

JK Lakshmi Cement increased its volumes by 8% and its profit after tax by over 55% this year. It had a revenue of Rs 4,459 crore in FY21.

The cement industry, as per the company, will experience a prolonged period of stable demand growth of about 5 to 6% per year once the pandemic storm has passed.

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Also read: Ambuja Cements to invest Rs 310 crore to expand Ropar Unit in Punjab

Also read: Cement industry targets 80 mt capacity addition in next 3 years

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