JK Lakshmi Cement to lead Rs 80 billion capex for growth
Cement

JK Lakshmi Cement to lead Rs 80 billion capex for growth

JK Lakshmi Cement has announced its plans to invest approximately Rs 80 billion over a span of six years. Their goal is to increase their capacity to 30 million tpa (tonnes per annum) from the projected 18 million tpa by the end of FY24. The company aims to achieve this target by 2030.

In order to expand their immediate capacity, the company is currently in the process of increasing capacity at their subsidiary, Udaipur Cement Works in Rajasthan, by 2.5 million tpa. This expansion involves both clinker and cement-making capacities of 1.5 million tpa and 2.5 million tpa respectively, requiring an estimated capital expenditure of Rs 1,650 crore.

It is expected that the commissioning of this expansion will take place in the next few quarters, which will position the company as one of the top ten cement manufacturing companies in India. So far, they have already incurred Rs 8.5 billion until FY23.

JK Lakshmi Cement, which recently entered east-central Uttar Pradesh, is pursuing both organic expansion and inorganic growth through acquisitions. Currently, they are exploring the possibility of acquiring land for greenfield projects in Nagaur (Rajasthan) and Kutch (Gujarat).

Furthermore, the company has significant proven reserves in its operational limestone mines in Rajasthan, which allows for the brownfield expansion. However, the new mining assets in Rajasthan and Gujarat have yet to commence operations.

While the government's initiatives are expected to boost demand for infrastructure projects, housing, and construction activities, JK Lakshmi Cement primarily witnesses 62-65% of its demand from the housing sector, 20-25% from infrastructure projects, and the remaining demand from industrial and commercial activities.

Also read:
Brookfield Infra JV to invest on data centre in Mumbai
JSW Steel emerges 'preferred bidder' of mining lease


JK Lakshmi Cement has announced its plans to invest approximately Rs 80 billion over a span of six years. Their goal is to increase their capacity to 30 million tpa (tonnes per annum) from the projected 18 million tpa by the end of FY24. The company aims to achieve this target by 2030. In order to expand their immediate capacity, the company is currently in the process of increasing capacity at their subsidiary, Udaipur Cement Works in Rajasthan, by 2.5 million tpa. This expansion involves both clinker and cement-making capacities of 1.5 million tpa and 2.5 million tpa respectively, requiring an estimated capital expenditure of Rs 1,650 crore. It is expected that the commissioning of this expansion will take place in the next few quarters, which will position the company as one of the top ten cement manufacturing companies in India. So far, they have already incurred Rs 8.5 billion until FY23. JK Lakshmi Cement, which recently entered east-central Uttar Pradesh, is pursuing both organic expansion and inorganic growth through acquisitions. Currently, they are exploring the possibility of acquiring land for greenfield projects in Nagaur (Rajasthan) and Kutch (Gujarat). Furthermore, the company has significant proven reserves in its operational limestone mines in Rajasthan, which allows for the brownfield expansion. However, the new mining assets in Rajasthan and Gujarat have yet to commence operations. While the government's initiatives are expected to boost demand for infrastructure projects, housing, and construction activities, JK Lakshmi Cement primarily witnesses 62-65% of its demand from the housing sector, 20-25% from infrastructure projects, and the remaining demand from industrial and commercial activities. Also read: Brookfield Infra JV to invest on data centre in Mumbai JSW Steel emerges 'preferred bidder' of mining lease

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?