JK Cement Ltd completes 4.2 mtpa expansion plan with its new plant in Gujarat

MUMBAI: Indian cement maker, JK Cement has set up a new greenfield facility of 0.7 million tonne in Gujarat which completes the company’s grey cement expansion plan of 4.2 million tonne per annum for FY 21.
“We have come into the right core market, our strong presence is visible now. We are very confident of ramping up the volume very fast to reach around 60-70% capacity in no time,” said Rajnish Kapur, company’s Business Head in an interaction with ET.

The grey cement grinding unit in Balasinor is part of the company’s grey cement expansion plan of 4.2 mtpa. The 4.2 mtpa capacity had a capex of around Rs 2000 crore, and this Gujarat plant could be around Rs 180-190 crore, Kapur said adding the plant is up and have started booking orders.

JK Cement is also planning to increase grey cement capacity through a Greenfield plant at Panna, Madhya Pradesh where it has limestone mines.

“The plant is in the pipeline, It will be around 3-3.5 mt and it is a big step for us and with that we will be diversifying more into central markets,” Kapur said.

With this new expansion plan the company aims to reach 20 million tonne of cement making capacity from the current level of 14-14.5 million tonne going ahead, Kapur added.

“While we are already supplying the active cement demand in Gujarat, the Balasinor grinding unit will enable us to cater to the high potential markets across Surat, Baroda and Rajkot and others,” said A.K. Saraogi, the company’s chief financial officer said.

“The new plant will enable increasing employment opportunities for the locals and further strengthen the brand’s deep-rooted presence across the country,” Saraogi added.

The company had a 1 mt expansion in its plant in Nimbahera, Rajasthan last year, second expansion was at a mill in Mangrol and a 2.5 mt in its Aligarh plant in U.P. With this current 0.7 mt the company completes the 4.2 cycle, Kapur said.

“Overall we see that the demand has started catching up, and we are expanding at the right time. What we can see is that the industry demand is on a growth path as against last year. North has done fairly better with around 15% growth compared to last year,” Kapur said.