Construction Industry News
JK Lakshmi Cement has announced its plans to invest around Rs 80 billion over a six-year period. Their goal is to increase their capacity to 30 million tpa (tons per year) from the expected 18 million tpa by the end of FY24. The company aims to achieve this goal by 2030.
To expand their immediate capacity, the company is currently increasing capacity at their subsidiary, Udaipur Cement Works in Rajasthan, by 2.5 million tpa. This expansion includes both clinker and cement production capacities of 1.5 million tpa and 2.5 million tpa respectively, requiring an estimated capital expenditure of Rs 1,650 crore.
The commissioning of this expansion is expected to take place in the coming quarters, positioning the company as one of the top ten cement manufacturing companies in India. So far, they have already raised Rs 8.5 billion to FY23.
JK Lakshmi Cement, which recently entered east-central Uttar Pradesh, is pursuing both organic expansion and inorganic growth through acquisitions. They are currently exploring the possibility of acquiring land for greenfield projects in Nagaur (Rajasthan) and Kutch (Gujarat).
In addition, the company has significant proven reserves in its operational limestone mines in Rajasthan, enabling the expansion of the brownfield. However, the new mining assets in Rajasthan and Gujarat have yet to start.
While the government's initiatives are expected to drive demand for infrastructure projects, housing, and construction activities, JK Lakshmi Cement is mainly witnessing 62-65% of demand from the housing sector, 20-25% from infrastructure projects, and the remaining demand from industrial and commercial activities.
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