The Hindu Business Line : JK Cement turnover may cross Rs 1,000 cr

Looking ahead
Capacity expansion programme of both white and grey cement are on schedule.
Orders placed for co-generation power projects; this too is on schedule.
Awaiting feasibility report for its proposed 3 mtpa greenfield integrated cement plant in Karnataka.

Kolkata , April 3

The Kanpur-based JK Cement Ltd, the flagship company of the Yadhupati Singhania group, hopes to record gross sales of more than Rs 1,000 crore in the just concluded financial year 2005-06.

According to Mr A.K Saraogi, President, Corporate Affairs and CFO, net sales of the company would certainly be crossing Rs 900 crore. In the first nine months of 2005-06, JK Cement registered a total income of Rs 627.8 crore and a net profit of Rs 49.9 crore.

"When you are calculating gross sales or turnover some other aspects are also added to net sales. Once those are added we are confident that our turnover would well cross the Rs 1,000-crore mark," Mr Saraogi told Business Line.

Talking about the ongoing projects in JK Cement, he said, capacity expansion programme of both white and grey cement are on schedule and fresh capacities are likely to be commissioned in June.

"For the co-generation power projects we have already placed orders. This too is on schedule. Moreover, our plants have registered 100 per cent capacity utilisation in the last fiscal," he said.

JK Cement is the only second white cement manufacturer in India after Grasim Industries. It was earlier a division of JK Synthetics Ltd. It has three factories and all are located in Rajasthan.

While the grey cement capacity is being raised from 3.5 million tonnes per annum (mtpa) to 4 mtpa, the white cement's production capacity would be increased to 0.4 mtpa from 0.3 mtpa.

The promoters have recently offloaded 26 per cent of their stake and raised approximately Rs 300 crore for funding the ongoing projects through a public issue.

New project

Meanwhile, JK Cement is waiting for the feasibility report for its proposed 3 mtpa greenfield integrated cement plant in Karnataka. The report is being prepared by the global cement consultancy major Holtec Engineering.

According to Mr Saraogi, the consultant is looking into all important aspects, including market potential and optimum size of the plant.

"The report is likely to be readied within the next one month and subsequently it would be placed before the board of directors. In all probability, we would take a final call on this matter in the last quarter of 2006," he said.

The Karnataka Government has already offered mining lease to Jaykaycem Ltd, a special purpose vehicle floated for this project. The mines are at Mudhgol near the Goa-Karnataka border.

The approximate cost of setting up this plant, which would have co-generation power facility and a grinding unit, is pegged around Rs 750 crore.