Indicating one mid-size domestic buy out, J K Lakshmi Cement today said it would stick to its capacity addition target of having 10 million tonnes per annum (mtpa) by 2012-13 against 4.7 mtpa now.
"We stand by our earlier projection of 10 mtpa installed capacity by 2012-13," J K Lakshmi Cement Whole-Time Director Shailendra Chouksey told PTI.
The company is currently setting up a 0.55 mtpa grinding unit at Jhajhar in Rajasthan which will go on stream by the end of current year taking its installed cement making capacity to 5.3 mtpa.
It is also in the process of starting construction work for a new plant at Durg in Chhattisgarh having an installed capacity of 2.7 mtpa. The company expects the Rs 1,200 crore plant to go on stream by March 2013.
Asked whether there could be one acquisition to plug the two mtpa gap to reach to its targeted 10 mtpa capacity by 2012-13, Chouksey refrained from making any direct comment, but exuded confidence that the target would be met.
JK Lakhsmi Cement has two manufacturing plants, one each in Rajasthan and Gujarat, and essentially caters to the western and northern markets of the country.
Since the southern market is plagued with over capacity and cement is largely a regional commodity, it is likely that the company would go for acquisition in eastern India.
Enquired about it, Chouksey said that the time is not ripe yet to comment further.
India's cement making capacity currently stands at around 300 mtpa and the industry estimates that the requirement for the building material would likely to go up to 1,500 mtpa in the next 25 years.
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