JK Lakshmi Cement to invest Rs 2,000 cr
In India, most cement companies posted encouraging financial performance in the September quarter despite challenging economic environment. Though the lower base last year helped companies, most of them had done well considering rising operational cost and slowing demand.
The Indian cement industry has built huge capacity in anticipation of demand from large scale government projects. However, the economic slowdown has put the brakes not only on government projects but also on private sector spending.
The cement industry capacity utilisation hovers around 75 per cent, says Vinita Singhania, Managing Director, JK Lakshmi Cement, who spoke to a business newspaper.
On the company's expansion plans Singhania said that the company's plans are to invest Rs 2,000 crore over the next three years to take its capacity to nine mt from 5.3 mt. It will soon start work on a 2.7-mt greenfield project at Durg in Chhattisgarh.
The plant, which is coming up with an investment of Rs 1,250 crore, is expected to be commissioned by October next.