JK Lakshmi to set up greenfield cement plant in Chandigarh
As part of its expansion strategy, JK Lakshmi Cement (JKLC) will come up with greenfield cement plant in Durg, Chattisgarh with a capacity of 2.7 mt.
AC Choksi Share Brokers company in its research report said that the project is on track and is expected to be operational by October 2013. It's split grinding unit of 0.55 mn mt at Jhajjar, Haryana became operational in April 2012.
JKLC has secured long-term power supply with VS Lignite at a cost closer to its captive generation cost. JKLC is a fuel efficient manufacturer, which is expected to lead to an improvement in its margins. JKLC is to reap benefits of exposure to better performing markets and higher capacity utilisations.
JKLC with a market share of 2.17 per cent, caters to the Northern(56 per cent) and Western(44 per cent) regions of the country. Gujarat and Rajasthan are the top two markets for JKLC, contributing ~60 per cent of the company's total volumes.